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
