Hey Smart Guys/Gals - Question about NOI

[Brandon Turner]

Hey, I'm working on a spreadsheet and I'm wondering:

Does the Net Operating Income include deducting the costs for the "big items" that happen every so often, like roofs, parking lots, etc? I mean, if I set aside 3% per month for those big expenses that only occur once in a blue moon, do I include subtract that 5% as part of my expenses to determine NOI or no?

thoughts? Does it depend on the investor?