NOI and CAP rate during the first year

[George P.]

As a landlord, I understand what those acronyms stand for and how to calculate them, but i am having difficulty understanding how to apply them during the initial stages (i.e. the first 1-2 years).

Here's what i mean:

purchased 3 homes in the past 1.5 yrs.

1. 53k purchase price. rent - $925. in 1.5 yrs i have spend around $14k on everything but P&I, settlement charges, down payment.

my GOI for this home is $11,100. TheNOI on this home would be 0 or negative. So, i can't calculate the CAP rate.

2. 80k home. rent is $1125. spend around 13k on everything. GOI is 13.5k

3. 75k home - $1175. spend around 13k on everything. GOI is 14.1k

What am i missing? do those calculations only apply to those that flip houses? :idea: