Real Estate Math
A Washington apartment has 24 units all renting at $1,600/month. NOI is $268,800/year. What is the expense ratio as a percentage of potential gross income?
A30.2%✓ Correct
B32.2%
C35.0%
D37.5%
Explanation
PGI = 24 × $1,600 × 12 = $460,800. Expenses = $460,800 − $268,800 = $192,000.
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