Net Operating Income in Real Estate Explained

In this Hauseit tutorial we'll explain what NOI, or net operating income, means in the real estate industry, and how to calculate it as well as cap rates.

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In this video, we'll go over a live example of a condo investment property in Miami, Florida and calculate its NOI as well as its cap rate using publicly available sources as well as Hauseit's cap rate calculator: https://www.hauseit.com/cap-rate-calculator/

Remember that net operating income, or NOI, is similar to EBITDA in corporate finance. That is, NOI doesn't account for income taxes, interest expense or depreciation which can vary across properties and investors. As a result, NOI is a very hard to manipulate number that you can use to compare across different properties.

Remember, EBITDA stands for earnings before interest, taxes, depreciation and amortization. Just like NOI! NOI is your gross revenue less your operating expenses. Essentially NOI is your operating profit.

So there you have it. We hope you found this video helpful, if you did, please hit like, or subscribe, and don't be shy about leaving us a comment if you have any questions. Thank you!

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Hauseit Group LLC, Licensed Real Estate Broker
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