Money & Performance
Net Operating Income NOI
What is left after operating costs but before the mortgage.
Why you care
It is the honest measure of the property as a business, because it ignores how you financed it. Two buyers paying cash and 20% down have the same NOI and wildly different cash flow.
Worked example
$72,000 gross − $41,200 of operating costs = $30,800 NOI. Subtract $26,800 of mortgage principal and interest and your cash flow is $4,000. One HVAC replacement erases the year.
Taught in Building a Real P&L