Property Management
Net operating income (NOI) is calculated as:
AGross income minus vacancy, collection losses, and operating expenses✓ Correct
BGross income minus mortgage payments
CTotal rent collected minus property taxes only
DCash flow after all expenses including debt service
Explanation
NOI = Gross Potential Income − Vacancy and Collection Losses − Operating Expenses. NOI does NOT deduct mortgage payments (debt service). It represents the income produced by the property before financing costs.
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