Hello, this is Shuo. Yesterday we learned about NOI – net operating income. So today let’s test it out.

Hypothetically, if a property’s gross potential income is 800k, with 10% economic vacancy, and 400k of expenses, what is the NOI? 

So this is how you calculate it. (800k * (1-10%) – 400k)

And you got the answer right. ($320,000)

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Patrick Grimes

Patrick Grimes is a design engineer and CEO and Founder of Invest on Main Street, LLC. His real estate holdings include general partner ownership of a multifamily and single-family real estate portfolio valued over $146M, including 1,950+ units across the southeastern United States and Texas.

He has been active in real estate investment since 2007, including purchasing land and distressed assets, renovating them, and stabilizing them for long-term cash flow. ​To scale his real estate portfolio, Patrick moved from single-family to multifamily investing and founded Invest on Main Street, a private equity firm specializing in multifamily value-add projects in emerging markets.

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