The calculation for calculating NOI for a NNN leased property is a follows:Rental Income+ Reimbursement Income (Tenant reimbursing the landlord for operating expenses)= Subtotal- Vacancy/Collection Loss (% Applied to the subtotal)= Effective Gross Income- Real estate taxes (Typically reimbursed in a NNN lease)- Insurance (Typically reimbursed in a NNN lease)- Maintenance (This will depend on if single-tenant building or multi)- Utilities (Could be nothing is single-tenant building)- Management Fees (Typically reimbursed in a NNN lease)- General/Admin Expenses (Typically reimbursed in a NNN lease)- Reserve for replacement (Tenants do not typically reimburse for this)= NOINOI/Cap Rate = Market Value

Are you all doing anything for well behaving tenants with expiring leases or are you looking to turn over tasks and new applicants?

What is the most effective way you’ve found a great property management company?

I’m trying to find the most effective way to source off market multi family deals.

You cannot plan around or effectively counter those things, because again they are unknown. 

Will there be any long lasting negative effects to their credit? 

I'm hoping you're going to run a title search to verify that there are no liens in effect. 

I don't think I should count the missed principal payments as cash flow because that is in effect reducing my equity in my property, but what about the interest I would not be paying for those two months?

I don't think I should count the missed principal payments as cash flow because that is in effect reducing my equity in my property, but what about the interest I would not be paying for those two months?

@Joseph M'Mwirichia I'm not hedging a certain percent on the purchase price, I'm just keeping very conservative projections on rent growth and vacancies for Y1/Y2, and required reserves, which has the net effect of lowering purchase price to meet certain return thresholds.