Real Estate Math
A South Dakota investor receives $3,500/month rent and has an annual NOI of $28,500. What are the annual operating expenses?
A$12,000
B$13,500✓ Correct
C$14,500
D$28,500
Explanation
Annual gross rent = $3,500 × 12 = $42,000. Operating expenses = $42,000 − $28,500 = $13,500. Using the values given ($3,500, $28,500), apply the appropriate formula.. The correct answer is $13,500.. This is a common calculation on the South Dakota real estate exam.
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