Real Estate Math
A Tennessee property has a potential gross income of $60,000, a 5% vacancy rate, and operating expenses of $22,000. What is the net operating income?
A$35,000✓ Correct
B$38,000
C$29,750
D$34,500
Explanation
EGI = $60,000 × (1 − 0.05) = $57,000. NOI = $57,000 − $22,000 = $35,000. To solve this, multiply the relevant values: $60,000, and $22,000 at 5%.. The correct answer is $35,000.. This is a common calculation on the Tennessee real estate exam.
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