23d • General discussion
📊 UNDERWRITING TIP: Know Your NOI
If you don’t understand NOI, you don’t understand the deal.
NOI (Net Operating Income) is the income a property produces after operating expenses, but before debt service and taxes.
NOI = Gross Rental Income
– Operating Expenses
= Net Operating Income
✔️ Includes: rents, other income, management, maintenance, insurance, taxes, utilities
❌ Excludes: mortgage payments, depreciation, income taxes
💡 Why NOI matters:
• Determines property value
• Drives cap rate calculations
• Shows the true performance of the asset
• Helps you compare deals apples-to-apples
If the NOI doesn’t support the price — the deal doesn’t work. Period.
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📊 UNDERWRITING TIP: Know Your NOI
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