How Seasoned Investors Calculate Net Income in ExcelNet Income in real estate investing is typically calculated as:Net Income=Gross Income−Operating Expenses−Debt ServiceNet Income=Gross Income−Operating Expenses−Debt ServiceHere’s a simple way to calculate it in Excel:Create a Spreadsheet with the following columns:Income Sources (Rent, Laundry, Parking, Other)Gross Income (Sum of all income sources)Operating Expenses (Property taxes, Insurance, Maintenance, Utilities, Property management, etc.)Net Operating Income (NOI) = Gross Income - Operating ExpensesDebt Service (Mortgage payments, Interest)Net Income = NOI - Debt ServiceUse Formulas in Excel:Total Gross Income → =SUM(B2:B5)Total Operating Expenses → =SUM(C2:C10)NOI Calculation → =B6-C11Net Income Calculation → =D6-D12Software for New Investors to Use OnlineIf you’re a new investor looking for user-friendly tools, consider:Stessa (Free) – Tracks income, expenses, and generates financial reports automatically.DealCheck – Great for analyzing rental properties, BRRRR, and multifamily deals.BiggerPockets Rental Calculator – A simple tool for quick deal analysis.PropStream – More advanced, with market research and deal analysis features.REI Hub – Accounting-focused software for rental properties.I hope this helps !

You will report worldwide income on your federal and Kansas tax returns.You will also include the MO activity on your KS return.Your MO return will only include the acitivity within that state, which in this case, is the rental property.In the future, if you have income in MO(either through the sale of the property or through rental income), you will pay tax to MO but KS will give you a credit for any taxes you pay to MO.best of luck

Here’s how the ATI exemption process typically works:Trigger Event: An Assessable Transfer of Interest occurs when a property is sold, inherited, or otherwise changes ownership.Reassessment: Following the transfer, the county reassesses the property’s value, which could result in a higher tax bill.Application for Exemption: The new property owner can apply for the ATI exemption to reduce the taxable value of the property.

I really suggest you change your goal from making a tiny taxable cash flow (anything less than $1,000/mo per door.) until capex eats it up.

Has anyone added extra bedrooms to a multi-family property to increase rental income?

Congratulations, you get to share your partners tax burden and pay the depreciation recapture at ordinary income rates. 

You need sufficient NET (after all expenses) self-employment income from something like contract (1099) work, being a Realtor, wholesaling and so on.

The last 3 years I gave away more than half my taxable income and last year I gave away 4 to 5 times my taxable income which perturbs the scorecard.So for me, I plan to stop when it is no longer fun. 

A few things to note-Loan payoff isn't part of the calculation of what taxable gain will be. 

Passive income through real estate is one of the most powerful ways to build generational wealth.