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52
Posts
11
Votes
Michael Lettieri
  • Homeowner
  • Jersey City, NJ
11
Votes |
52
Posts

How to calculate NOI

Michael Lettieri
  • Homeowner
  • Jersey City, NJ
Posted Jun 30 2020, 19:17

I'm interested in a house on the market for $1,500,000 with the following monthly numbers;

 rental income of $9,000

property Taxes $1588

Insurance $400

How do I estimate the other expenses such as utility bills (sewer/water/gas/electric), maintenance, vacancy, etc

Once I have these expenses I can calculate the property value based on NOI/CAPRATE. Would utilizing the 1% rule for maintenance be correct? ($1,500,00 X 10%/12 = $1250 monthly)
If there is a guide anyone can point me to I would appreciate it. Thank you in advance.

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