Real Estate Math
A Washington investment property has a potential gross income of $96,000/year, a 7% vacancy rate, and fixed operating expenses of $28,000. What is the NOI?
A$59,280
B$61,280✓ Correct
C$68,000
D$89,280
Explanation
EGI = $96,000 × (1 − 0.07) = $89,280. NOI = $89,280 − $28,000 = $61,280.93 = $89,280. NOI = $89,280 − $28,000 = $61,280.
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