Net Operating Income (NOI)

Archived in the category: Real Estate Terms & Definitions
Posted by admin on 08 Feb 11 - 0 Comments

Net operating income is one of the most important measures of property’s profitability. The NOI is simply the gross operating income minus operating expenses. Something of importance to realize is that mortgage payments and depreciation are not operating expenses. Operating expenses are expenses necessary for maintaining the property and ensuring its continued ability to produce income.

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