Property Management

A net operating income (NOI) is calculated as:

AEffective Gross Income minus Operating Expenses✓ Correct
BGross Potential Income minus Mortgage Payments
CTotal Revenue minus All Expenses including Debt Service
DMonthly Rent Times 12

Explanation

NOI = Effective Gross Income (EGI) − Operating Expenses. Operating expenses include management fees, insurance, taxes, maintenance — but NOT mortgage debt service payments.

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