is the property’s income after taken in consideration of vacancy and credit loss and all operating expenses.
It is a property’s gross operating income less the sum of all operating expenses.
NOI is the MOST important calculations in your real estate investment.
It is important to understand what is included in operating expenses,which are all necessary maintenance expenses so that the property can continue to produce income. Not operating expense are loan payment, depreciation and capital expenditures.
To calculate :
Net Operating Income = Gross Operating Income – Operating Expense
(Gross Operating Income = Gross Scheduled Income - Vacancy and Credit Loss)
