If a property has an effective gross income of $100,000 and expenses of $30,000, what is the net operating income?

To determine the net operating income (NOI), you subtract the total expenses from the effective gross income. In this case, the effective gross income is $100,000, and the expenses total $30,000.

The calculation is as follows:

Net Operating Income = Effective Gross Income - Expenses
Net Operating Income = $100,000 - $30,000
Net Operating Income = $70,000

Therefore, the net operating income for the property is $70,000. This result indicates how much income the property generates after covering its operating expenses, which is a crucial metric for assessing the profitability of real estate investments. Understanding this concept is vital for making informed decisions in real estate transactions, as it helps in evaluating the potential return on investment.