Property Management
An owner's net operating income (NOI) is calculated as:
AGross potential income minus vacancy
BEffective gross income minus all operating expenses (excluding debt service)✓ Correct
CTotal rental income minus mortgage payments
DGross income minus property taxes only
Explanation
NOI = Effective Gross Income - Operating Expenses (excluding mortgage debt service). NOI is a key metric in real estate investment analysis and is used in the income approach to valuation.
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