Net Operating Income

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Operating expenses are any and all expenses necessary in maintaining and operating a property.  It includes – utilities, property taxes, lawn care, legal and accounting fees, advertising, management, supplies, and insurance to name a few.

Operating expenses DO NOT include any debt service (loan payments), capital expenditures (one time expense/upgrade – new windows, roof, driveway, etc.), or depreciation.

Calculation: GOI – operating expenses = NOI

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