Real Estate Math

A Wisconsin duplex has two units each renting for $950/month. After a 7% vacancy factor and $12,000 annual expenses, what is the annual NOI?

A$9,204✓ Correct
B$11,172
C$10,164
D$10,920

Explanation

Gross income = 2 × $950 × 12 = $22,800. EGI = $22,800 × 0.93 = $21,204. NOI = $21,204 − $12,000 = $9,204. ()

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