Which of the following is an accurate statement?

The statement regarding deriving Net Operating Income (NOI) is indeed accurate because NOI is calculated by taking the Annual Gross Income and subtracting the total annual operating expenses. This process gives an investor a clear understanding of the income generated from a property after accounting for the costs associated with its operation, which is essential for assessing the property's profitability and financial health.

When considering the other choices, net income is not used to derive the Gross Rent Multiplier (GRM); instead, it focuses primarily on gross rental income relative to property value. Similarly, when calculating the capitalization rate, the formula typically involves dividing the net operating income by the property's value, not the other way around, highlighting a key distinction in the calculations. Lastly, while both GRM and cap rate can provide insights for investors in property valuation, they serve different purposes and thus may not be equally desirable depending on an investor’s strategy and the specifics of the investment property being evaluated.