An office building has an effective gross income of $1,240,000. The operating expenses are $460,000, and the amount paid in mortgage payments equals $380,000 per year. What is the net operating income of the property? $400,000. The yearly mortgage payments must be factored into the NOI. $860,000. The NOI always equals the effective gross income minus the yearly mortgage payments. $1,240,000. The NOI always equals the effective gross income. $780,000. Mortgage payments are not factored into the NOI.