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Updated over 13 years ago,
What is my NOI and Cap Rate for this Property
Okay, so I've been learning about NOI and cap rates and I'm curious to figure out what mine is for the house I currently own. I live in it, but also rent it out to some friends.
Purchase Price: $105,000
Renovations: $15,000 (not sure if this is included)
Gross Yearly Rental Income: $16,200
Property Taxes: $2,200 per year
Home Owners Insurance: $330
HOA: $190
Other operating costs (eg. routine rerpairs): $400
Vacancy rate: not sure what number to use here??
NOI: $13,080?
Cap rate: $13,080 / $105,000 ?? 12.5%
Is this close to correct?
And, where do I factor in debt service? Because that seems to be a more important ratio as that reflects my cash returns?
Thanks for the help guys, I'm new and have a lot to learn!