When a Mississippi appraiser uses the income approach for a small apartment building, which expense is NOT deducted before arriving at NOI?

Explanation

NOI (Net Operating Income) is calculated before debt service. The income approach measures the property's income-producing capacity independent of its financing. Operating expenses deducted include taxes, insurance, maintenance, management fees, and reserves — but NOT mortgage payments, which are below-the-line financing costs that vary by owner.