Net Operating Income (NOl): NOl represents the income from the property after operating expenses, but before debt service and taxes. Formula: NOI = Gross Rental Income - Operating Expenses Example: If a property earns 100k in rental income and has 30k in operating expenses, the NOl would be 70k 2. Cap Rate (Capitalization Rate): The cap rate indicates the return on investment based on the current market value of the property. Formula: Cap Rate = Net Operating Income (NOl) / Current Market Value

Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. Here's a step by step guide to calculate the NOI of your investment. | Amazing Fort Bragg Fayetteville Home Services