Real Estate Math
An apartment building has 10 units all renting at $950/month. The vacancy rate is 8%. Annual operating expenses are $45,000. What is the NOI?
A$69,600
B$60,360✓ Correct
C$114,000
D$69,000
Explanation
Gross Potential Income = 10 × $950 × 12 = $114,000. Effective Gross Income = $114,000 × (1 − 0.
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