Real Estate Math
A duplex has two units each renting for $800/month. Annual operating expenses are $7,200. What is the annual NOI?
A$12,000✓ Correct
B$9,600
C$19,200
D$14,400
Explanation
Gross Annual Income = 2 units × $800 × 12 months = $19,200. NOI = $19,200 − $7,200 = $12,000. Using the values given ($800, $7,200), apply the appropriate formula.. The correct answer is $12,000.. This is a common calculation on the Tennessee real estate exam.
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