Hi Prospects & Friends!
Whether you're a property manager or an investor it is wise to know what NOI is. Any investment property will have an NOI if you're generating income from it. NOI is "Net Operating Income", which is the income left after all expenses have been paid. So if your gross income is $6,500/month and your expenses total $10,500 you have a negative NOI and need to either adjust the income generated, reduce the expenses or sale the property since you have a -$4,000 monthly loss. Sometimes a negative NOI can be generated by a bad economy so best way to avoid a negative NOI is to just do your homework on the investment by analyzing the financial income statements, GRM and plugging in the numbers for the I=V/R equation. Doing that will detour you from buying the investment in the first place and avoid the negative NOI.
