Property Valuation
In the income approach to appraising a Great Falls, Montana apartment building, which expense is NOT deducted to arrive at Net Operating Income (NOI)?
AProperty management fees
BProperty taxes
CMortgage payments (debt service)✓ Correct
DInsurance premiums
Explanation
NOI is calculated before debt service (mortgage payments). NOI = Effective Gross Income - Operating Expenses.
Related Montana Property Valuation Questions
- An appraiser in Helena, Montana evaluates a mixed-use building (retail below, apartments above). Which appraisal approach best applies?
- Depreciation in real estate appraisal refers to:
- The cost approach to appraisal is most useful for:
- In Montana, 'comparable rent analysis' is used by property managers and appraisers to:
- The principle of progression holds that:
- In Montana, a buyer's broker price opinion (BPO) differs from a formal appraisal in that a BPO:
- In Montana, an appraiser's use of 'paired sales analysis' in the sales comparison approach involves:
- In Montana, the concept of 'progression' in real estate value means that:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →