Property Valuation
When an appraiser applies the income approach to a commercial property, the Net Operating Income (NOI) is calculated BEFORE deducting:
AProperty taxes
BInsurance
CManagement fees
DMortgage debt service (principal and interest)✓ Correct
Explanation
NOI is calculated after deducting all operating expenses (including taxes, insurance, management fees, maintenance, etc.) but BEFORE deducting mortgage debt service. NOI represents the property's earning power independent of financing.
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