Property Valuation
In Hawaii, what is the 'net operating income' (NOI) used for in investment property analysis?
AA. Gross income before any deductions
BB. Income remaining after deducting operating expenses but before debt service and income taxes✓ Correct
CC. Income after all expenses including mortgage payments
DD. The landlord's personal take-home pay from the property
Explanation
NOI = EGI - Operating Expenses (not including debt service or income taxes). It is the standard measure of income for income property valuation.
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