Real Estate Math
A Texas commercial property has an EGI of $180,000 and an operating expense ratio (OER) of 38%. What is the NOI?
A$108,000
B$111,600✓ Correct
C$114,000
D$118,000
Explanation
Operating expenses = $180,000 × 0.38 = $68,400. NOI = $180,000 − $68,400 = $111,600.
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