How to calculate NOI?

[Peyton LaBarbera]

My question is... When do I take out the average 5% vacancy fee and the average 10% maintenance fee? Are both taken out of the gross rental income before all of the other operating expenses or after you deduct the operating expenses?

Before Example: 100k gross rental income - 5% vacancy and 10% maintenance fee - all other operating expenses = NOI

or...

After Example: 100k gross rental income - all operating expenses - 5% vacancy and 10% maintenance fee = NOI

Correct me if any of these percentages are off or if you should calculate this a different way

Thank you,

Peyton LaBarbera