Real Estate Math
A Washington commercial property has $600,000 gross income, 10% vacancy, and a 48% expense ratio applied to effective gross income. What is the NOI?
A$239,400
B$280,800✓ Correct
C$299,520
D$312,000
Explanation
EGI = $600,000 × (1 − 0.10) = $540,000. Expenses = $540,000 × 48% = $259,200. NOI = $540,000 − $259,200 = $280,800.
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