Property Management
A net operating income (NOI) for a property is calculated BEFORE deducting:
AProperty taxes
BDebt service (mortgage payments)✓ Correct
CInsurance costs
DProperty management fees
Explanation
NOI is calculated before debt service (mortgage payments). NOI = Effective Gross Income − Operating Expenses. Debt service is deducted from NOI to arrive at before-tax cash flow.
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