Yes , your effective gross income minus your operating expenses equals your (NOI) net operating incomeand your NOI minus your debt service (loan Payment) equals your cash flow.Dave Boothe 954 email@example.comFeel free to call me with questions
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, CCIm443-574-1415
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.
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
LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.
Ask a question to get advice from brokers, investors, professionals and local experts.
Answer questions to raise your visibility as a trusted advisor and build new relationships.