Real Estate Math

A South Dakota rental property has 4 units each renting for $900/month. Annual expenses are $18,000. What is the annual NOI?

A$18,000
B$25,200✓ Correct
C$43,200
D$21,420

Explanation

Annual rent = 4 × $900 × 12 = $43,200. NOI = $43,200 − $18,000 = $25,200.

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