This is the One Metric Every New Real Estate Investor Must Know
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In recent posts, I've broken down the importance of knowing your numbers—especially if you're a new investor just starting out. And yes, while for young landlords to master, your net operating income (NOI) is your bread and butter. _ Related: 5 of Your Most Burning Questions About Cap Rate, NOI & More—Answered_ Whether you're looking at a new deal or managing an existing one, your NOI's your bottom line. It's your indicator of asset value. It's what lets you know, ultimately, whether you have a good deal on your hands or not. Here's a 68-second breakdown of NOI and why it matters. https://www.youtube.com/embed/qw6g4vn1y_A_ Related: Am I Missing Something, or Is Real Estate Investing Really Not That Hard?_ Hopefully now you have a better understanding of NOI and why it's so important for investors to understand. But if you have any outstanding questions, ask them in the comments below.