What the heck is a NOI (Net Operating Income) and why it's Important
What is the Net Operating Income (NOI)?
- Taking the amount of rent you Receive
- Subtract all the expenses related to operating the rental.
So why is this number important for house hackers?Because it tells you how much of your mortgage payment will be covered by tenant’s rent each month. When you are shopping for a house to hack, you probably have a good idea of how much you want your mortgage payment to be after the rental income, and a great way to determine that is figuring out the NOI. Also, it makes it much easier to determine what properties will work and won’t work for your needs. The numbers don’t lie.
Alright, so let’s get our math on and crunch some numbers(Go to minute 1:52 in the video and you'll see an example)
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