Property Valuation
A West Virginia property has an effective gross income of $80,000 and operating expenses of $35,000. What is the NOI?
A$35,000
B$45,000✓ Correct
C$80,000
D$115,000
Explanation
NOI = Effective Gross Income - Operating Expenses = $80,000 - $35,000 = $45,000. Net operating income is the income remaining after operating expenses are subtracted but before debt service (mortgage payments).
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