Why doesn't the Net Operating Income include the PMI and mortgage payment?

Why doesn't the Net Operating Income include the PMI and mortgage payment?

The Net Operating Income is a standard term used by real estate investors. It is meant to show the financial performance of the property itself without considering the costs of financing the property. On the other hand, the CASH FLOW considers the OPERATING COSTS plus the FINANCING COSTS.

EVALUATE > 1ST YEAR PROJECTION

    • Related Articles

    • How do I document Closing Costs in Property Tracker?

      The outputs from the "Closing Disclosure Sections B+C+E+H" and "Other Closing Costs and Fixup: Closing Disclosure Sections F+G+ Renovation costs" in the INPUT DATA > PROPERTY section of Property Tracker can be found in the EVALUATE > 1st YEAR ...

    • What is the Gross Equity Income?

      The Gross Equity Income is the sum of the cash flow, the principal payments, and the appreciation.  This is the bottom line return on your real estate investment.  GROSS EQUITY INCOME = CASH FLOW + PRINCIPAL PAYMENTS + APPRECIATION EVALUATE > 1ST ...

    • What apps does REAL ESTATE TOOLS provide for income property investors?

      PROPERTY TRACKER - PropertyTracker.com is a web-based service that helps you evaluate potential properties before you buy and track the mortgage, income, and expenses for properties that you already own. The first 30-days are free and clients are ...

    • What is Cash on Cash Return?

      A cash-on-cash return is a rate of return that calculates the cash income earned on the cash invested in a property. Put simply, cash-on-cash return measures the annual return the investor made on the property in relation to the amount of mortgage ...

    • What is Private Mortgage Insurance (PMI)?

      PMI stands for Private Mortgage Insurance. This is insurance to protect the lender when you have a small amount of equity in the property. PMI is typically charged when you put down less than 20% when buying a property. PMI can be removed when your ...