Net operating income is one of the most important measures of property’s profitability. The NOI is simply the gross operating income minus operating expenses. Something of importance to realize is…
Tag: real estate dictionary
Gross Operating Income
The gross operating income equals the property’s annual gross scheduled income, less vacancy and credit loss (uncollectable rent). It is the actual income which is expected to be collected in…
Vacancy and Credit Loss
In the earlier posts at Real Estate Analysis blog I have presented various input parameters, such as gross scheduled income, vacancy rate and operating expenses. From now we will look at…
Loan to Value (LTV) ratio
Loan to Value (LTV) ratio is the amount of the loan as it relates to the market value of the property which secures the loan. Banks are usually doing their…
Operating expenses
Operating expenses in Real Estate investment are all the expenses associated with operation and maintenance of a particular income producing property. They include items such as property insurance and taxes,…
Vacancy Rate
Vacancy rate is the ratio of the number of current occupied units compared with the total of units in a development, usually expressed as a percentage. If the calculations are…