Real Estate Math

A Tennessee apartment building has 20 units renting at $850/month with a 5% vacancy rate and $78,000 annual operating expenses. What is the annual NOI?

A$115,000✓ Correct
B$123,000
C$105,000
D$116,850

Explanation

PGI = 20 × $850 × 12 = $204,000. EGI = $204,000 × 0.

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