NOI is not making sense on BP Calculator

[Erik Maldonado]

Hey Everyone,

I am have a hard time figuring out the calculation for NOI on the BP rental calculator. I've put in dummy values to see if I can reproduce the calculations myself but NOI is not coming out right.

I understand that NOI should be income - expenses (def. NOI equals all revenue from the property, minus all reasonably necessary operating expenses). When I do just thatthe NOI comes out to -15. 1100 - 1413 + 298 (adding to exclude P & I) = -15.

Purchase: 50000

ARV: 75000

Reported Returns (cap returns checkout assuming NOI=-210):

• NOI: $210 ???
• CoC ROI: 17.25%
• Pro forma cap: 0.28%
• Purchase cap: 0.42%

Example Income: $1100

Example Expenses:

Total expenses: $1,413

• Mortgage: $296
• Taxes: $8
• Insurance: $8
• Variable expenses: $401
• Fixed expenses: $700

Fixed expenses: $700

• electricity: $100
• gas: $0
• water & sewer: $100
• hoa fees: $400
• garbage: $100
• Other: $0

Variable expenses: $401

• Vacancy: $77
• Maintenance: $110
• CapEx: $110
• Management fees: $104