Property Valuation
A Connecticut rental property generates annual gross income of $120,000 and has operating expenses of $45,000. What is the net operating income (NOI)?
A$45,000
B$75,000✓ Correct
C$120,000
D$165,000
Explanation
NOI = Gross Income − Operating Expenses = $120,000 − $45,000 = $75,000. Note: Debt service (mortgage payments) is not included in operating expenses for NOI calculation.
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