Real Estate Math
A Virginia rental property produces $48,000 in gross annual rent with a 10% vacancy rate and $18,000 in operating expenses. What is the Net Operating Income (NOI)?
A$25,200✓ Correct
B$30,000
C$43,200
D$25,000
Explanation
Effective Gross Income = $48,000 × (1 – 0.10) = $43,200. NOI = $43,200 – $18,000 = $25,200. To solve this, multiply the relevant values: $48,000 and $18,000 at 10%.. The correct answer is $25,200.. This is a common calculation on the Virginia real estate exam.
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