Real Estate Math

A Vermont duplex has monthly rents of $1,200 and $1,000. Annual operating expenses are $8,400. What is the annual NOI?

A$18,000✓ Correct
B$16,200
C$15,600
D$12,000

Explanation

Annual gross rent = ($1,200 + $1,000) x 12 = $2,200 x 12 = $26,400. NOI = $26,400 - $8,400 = $18,000. Correct index should be 0.

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