Include mortgage in NOI?
I'm crunching numbers on my first potential deal. I've read that a mortgage payment shouldn't be included in calculating the NOI. Is this true? And if so, why is it not considered an operating cost?
Here is my deal, any input?
ANNUAL INCOME: $16,800
unit 1: $700/month
Unit 2: $700/month
ANNUAL COSTS: $11,700
Property tax: 2300
Insurance: 2200
Owner Electric: 600
NOI = $11,700
Cap Rate = $12.3%