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Updated over 13 years ago,

User Stats

107
Posts
13
Votes
Asher Anthes
  • Charlotte, NC
13
Votes |
107
Posts

What is my NOI and Cap Rate for this Property

Asher Anthes
  • Charlotte, NC
Posted

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!

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