NOI is not making sense on BP Calculator

2 Replies

Hey Everyone,

I am have a hard time figuring out the calculation for NOI on the BP rental calculator. I've put in dummy values to see if I can reproduce the calculations myself but NOI is not coming out right.

I understand that NOI should be income - expenses (def. NOI equals all revenue from the property, minus all reasonably necessary operating expenses). When I do just thatthe NOI comes out to -15. 1100 - 1413 + 298 (adding to exclude P & I) = -15.

Purchase: 50000

ARV: 75000

Reported Returns (cap returns checkout assuming NOI=-210):

  • NOI: $210 ???
  • CoC ROI: 17.25%
  • Pro forma cap: 0.28%
  • Purchase cap: 0.42%

Example Income: $1100

Example Expenses:

Total expenses: $1,413

  • Mortgage: $296
  • Taxes: $8
  • Insurance: $8
  • Variable expenses: $401
  • Fixed expenses: $700

Fixed expenses: $700

  • electricity: $100
  • gas: $0
  • water & sewer: $100
  • hoa fees: $400
  • garbage: $100
  • Other: $0

Variable expenses: $401

  • Vacancy: $77
  • Maintenance: $110
  • CapEx: $110
  • Management fees: $104