Five Answers Needed For Investing in Real Estate - (3) Your Net Operating Income
Building Personal Wealth in Real Estate Building Personal Wealth in Abilene Texas
By the time you get to determining
your net operating you will have noticed there is some homework, research and
digging to do for investing in real estate. Especially if you want to be
successful long term.
Lets recap; You determined you Income Potential, you
did the math to find out the best estimate of operating expenses that you
could come up with. Now you can determine your (NOI) Net Operating Income. This
number is very important because your offer price will be relevant to this
To calculate it; simple subtract known expenses from
Hopefully you come up with a positive number, in most cases the higher the
SLOW DOWN! Don't Go Rushing Off Like Some Television House
Flipper with your hair on fire ready to BUY your first real estate investment.
You need to remember this number does NOT include your loan payment (if you have
one) also the interest rate you will be paying.
In other words: You see
the rainbow with a pot of gold under it? You don't get to keep all the gold.
Randy Dodd, Realtor, ePro, GRI, TAHS
2301 Barrow Abilene Texas 79605
(325) 692-5275 Office
(325) 733-4405 Cell Phone