Real Estate Math

A Washington property has a potential gross income of $150,000, vacancy of 7%, and operating expenses of 42% of EGI. What is the NOI?

A$81,165✓ Correct
B$87,000
C$63,000
D$72,000

Explanation

EGI = $150,000 × (1 – 0.07) = $150,000 × 0.93 = $139,500. Operating expenses = $139,500 × 42% = $58,590.42 = $58,590. NOI = $139,500 – $58,590 = $80,910. The

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