Net Operating Income – Cash Flow Before Taxes

Gross Scheduled Rents
minus
Vacancy (5%-6% usually used)
minus
Property Taxes
minus
insurance
minus
General Expenses (repairs, sinking fund, leasing)
equals
Net Operating Income
minus
Annual Debt Service
equals
Cash Flow Before Taxes

Leave a comment

Filed under 4 Benefits of Real Estate Investing

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.