lets say theres a multi family home and the NOI is 30,000…is that after the monthly payments or before??
NOI is the annual cost of ownership and rental operation for a free and clear property.
ok so its not the net after all expenses are paid??
Sorry, I mistyped.
NOI for a rental property operation is the net income after paying the annual costs of ownership and rental operation for a free and clear property but before income taxes.
Said another way, NOI is equal to a free and clear property’s yearly gross income minus operating expenses.
ooo ok>>that makes more sense…thanks man !!
NOI stands for NeT Operating Income. It works out as follows
Gross monthly or annual rent $10,000
Less the costs of managing and maintaining the property $5,000
Less the insurance and taxes $2,000
Less depreciation $1,000
Equal NOI $2,000
subtract the mortgage payments from the NOI to get the bottom line
Depreciation is not an operating expense. It is not included in the NOI calculations.
hey guys its me “mr do things different”…lol
NOI is “net operating income”.
take your Gross ($XX,XXX)
Subtract it from:
Taxes,
insurance,
Managment,
All Property Fee’s,
Vacancy Rating (Please factor more then 5% for god sakes),
Collection Loss ( Plz dont forget this one either),
your Mortgage payment,
Maintance (properties dont repair them-selfs. …lol)
And any other fee’s that can and will occurr in own this property…
Income properties can Make big $$$$ and also make youloose Big $$$$.
After you have done this arithmetic, what do you end up with?
What is collection loss? Could you give us an example of how this is an expense?
you have posted over 2000 messages and you dont know what collection loss is…
it the f---- you Factor I call it…lol
ITs when a tenant just dont pay you and rides the pine…
This is called “collection loss” the loss that could not be collected… andyes it does happen…
you have posted over 2000 messages and you dont know what collection loss is...
You’ve only posted a few times and you’ve alienated almost everyone with your childish insults. In addition, you need to read and follow the forum rules before you post again.
Mike
Sorry, I just have never had this happen to me. If a tenant does not pay, I evict before the end of the month and security deposit covers unpaid rent. Collection Loss is not something I budget for.
You still did not answer my first question, but chose to ridicule instead. Not very helpful to Terry and the rest of us who can’t make any sense of your response. Yes, I have posted quite a few times but that is irrelevant. I have expertise in certain niches of this business and hope that I can make a contribution where I can. I don’t know everything there is to know, and am not embarrassed to ask a question. I am not too old or so full of myself that I can’t learn something new every now and then.
Based upon my limited sample from the few posts you have already made, I think you would be happier at a different web site where your personality and posting style may be better appreciated.
WOW!! how old is that dude??..haha…thanks for the input tho guys!!
NOI is "net operating income". take your Gross ($XX,XXX) Subtract it from: Taxes, insurance, Managment, All Property Fee's, Vacancy Rating (Please factor more then 5% for god sakes), Collection Loss ( Plz dont forget this one either), your Mortgage payment, Maintance (properties dont repair them-selfs. ...lol) And any other fee's that can and will occurr in own this property..... Income properties can Make big $$$$ and also make youloose Big $$$$.
This makes NOI a very easy math! Thanks for this one!