Figuring Your Net Operating Income

NOI or Net Operating Income is what you have left after all of your operating expenses (before you pay any debt service). These can be remembered with the acronym TIMMR.

Let’s say for example, you have a $100,000 property that brings in $1000 per month. This fits the “1%” rule for rental acquisitions. Your debt payment is $532 per month (30 years at 7%). That means you make $468 per month, right? Nope – not even close… 

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