Which of the following values is NOT used to determine an investor's net operating income?

Net operating income (NOI) is a key metric used in real estate investment that calculates the profitability of an income-generating property. To determine NOI, several factors are taken into account, including operating expenses, gross revenue, and vacancy losses.

Operating expenses represent the costs associated with running the property, such as maintenance, property management fees, insurance, and utilities. These are deducted from the property’s gross revenue to calculate NOI.

Gross revenue refers to the total income generated by the property before any expenses are deducted. This includes rent collected from tenants and any additional income from the property. To ascertain the net operating income, gross revenue is a fundamental input as it establishes the base from which expenses will be subtracted.

Vacancy losses account for the income lost when units within the property are not rented. This figure is subtracted from gross revenue to arrive at the effective gross income, which directly influences the calculation of NOI.

Mortgage payments, however, are not considered in the NOI calculation. This is because NOI is focused solely on operational performance and profitability without factoring in financing costs. Since NOI measures the income generated by the property itself irrespective of how that property is financed, mortgage payments are excluded from this calculation. Thus, the value that does not contribute to