Property Management

In Tennessee, a 'net operating income' (NOI) calculation for a rental property does NOT deduct:

AProperty taxes
BDebt service (mortgage payments)✓ Correct
CInsurance premiums
DMaintenance and repairs

Explanation

NOI is calculated before debt service — it reflects the property's income from operations regardless of financing structure. Debt service (principal and interest) is subtracted after NOI to calculate cash flow.

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