All Forum Posts by: Mike Campi

@Llewelyn A. sorry - writing for clarity, i mean if you cannot finance on your terms, does that become the reason to execute vs not execute or do you still place a greater weight on your anticipated NOI when deciding to make a purchase

@Llewelyn A. I understand why you're saying what you're saying. That said, let's take example B vs C though. Understood that the financing itself has NO bearing on the property or its ability to create value, but does your ability to finance then become your primary decision making tool? While the property's NOI is identical in B and C, B is a decision that economically rational people would take on, whereas C would not make logical sense (as far as I can tell, but again, no experience). Also wanted to thank you in advance , tremendously helpful and thoughtful.

also wanted to also thank everyone for writing. happy that I joined BP. thank you all for your insight. 

OK just starting out here so excuse my ignorance, but how does NOI make any sense on its own? Shouldn't there be some type of relationship between NOI and Operating Cash Flow, like a rule of thumb such as "if OCF outweighs NOI by X amount, don't invest"

Example: $1,000 in rental income per month - $200 in expenses = $800 per month. NOI alone says Great Investment.

But if Mortgage Payment was $2,000 / month to generate the $800 above, isn't this a Horrible Investment? 

I don't understand how it is so easy to justify these as two completely seperate indicators when one directly reduces the success of the other. Can someone please help me understand? It seems like Cash Flow should be the ONLY ratio that matters but I keep reading that NOI is actually the more important of the two.