When looking at the net operating income from a property, is that what is left over the pay the loan with?

In Buying Property - Asked by Barry B. - Feb 18, 2009
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Answer(s)

Dave B.
Broker/Agent
Fort Lauderdale, FL

Yes , your effective gross income minus your operating expenses equals your (NOI) net operating income
and your NOI minus your debt service (loan Payment) equals your cash flow.
Dave Boothe 954 245-3437
dave.boothe@marcusmillichap.com
Feel free to call me with questions

Feb 19, 2009
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Christopher K.
Broker/Agent
Ellicott City, MD

To get to cash flow available to service debt, you need to subtract capital expenditures and reserves, tenant improvement expenses, and commissions. These items are generally below the net operating income "line."
Christopher B. Kubler, CCIm
443-574-1415

Feb 21, 2009
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Karen H.
Developer
Beverly Hills, CA

go to www.cieinst.com and take the FREE online course. It explains everything in detail and is FABULOUS! It is about an hour long.

Mar 18, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

No. Net operating income (NOI) is prior to debt service. Debt service, capital reserves, tenant improvements and leasing commissions are all "below the line" expenses.
Chris Schreiber, CCIM

Apr 1, 2009
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