Net operating income (NOI) is the annual income generated by a rental property after subtracting all expenses from operations. Note: NOI does not factor in your financing costs.
The cash flow left when you subtract all reasonable and necessary operating expenses from your property’s revenue, excluding principal and interest on loans. For example, if your property generates $24,000 a year and costs $6,000 a year, then your NOI is the $18,000 per year or $1,500 per month.
Find out more and calculate your Net Operating Income with an REI-optimized Think Realty calculator!
0 Comments