North Carolina Real Estate Commission NC Real Estate Broker National NCREC-Broker-N Question # 16 Topic 2 Discussion

North Carolina Real Estate Commission NC Real Estate Broker National NCREC-Broker-N Question # 16 Topic 2 Discussion

NCREC-Broker-N Exam Topic 2 Question 16 Discussion:
Question #: 16
Topic #: 2

The monthly rent for each unit in a six-unit office building is $2,500. The annual vacancy rate averages 4%. The owner collects $3,000 per year in advertising fees. Annual operating expenses are $40,000. The annual debt service is $25,000. What is the net operating income of this property?


A.

$110,800


B.

$132,680


C.

$135,800


D.

$150,800


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