Today, let’s learn NOI.
To calculate a multifamily property’s value, we need to understand net operating income – for short, NOI.
NOI measures the property’s ability to generate revenue, which equals: the gross potential income, minus economic vacancy, and minus all the expenses EXCEPT debt service.
With that in mind, let’s play with some numbers tomorrow.
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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.