Real Estate Math

A South Carolina property rents for $2,600/month. Annual expenses: property taxes $3,900, insurance $1,200, maintenance $2,400, management 8%. What is the annual NOI?

A$21,204✓ Correct
B$23,700
C$17,796
D$19,596

Explanation

Annual rent = $2,600 × 12 = $31,200. Management fee = $31,200 × 8% = $2,496.

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