Real Estate Math
A 20-unit apartment building in Texas has annual potential gross income of $240,000. After 7% vacancy and $85,000 in annual operating expenses, what is the NOI?
A$138,200✓ Correct
B$155,000
C$140,000
D$163,000
Explanation
Effective Gross Income = $240,000 × (1 – 7%) = $240,000 × 0.93 = $223,200. NOI = $223,200 – $85,000 = $138,200.
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