Real Estate Math

A South Dakota property generates monthly rents of $2,200. Annual operating expenses are $8,400. What is the annual net operating income (NOI)?

A$17,400
B$18,000✓ Correct
C$26,400
D$18,600

Explanation

Annual gross income: $2,200 × 12 = $26,400. NOI = Gross Income - Operating Expenses = $26,400 - $8,400 = $18,000.

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