In recent posts, I’ve broken down the importance of knowing your numbers—especially if you’re a new investor just starting out. And yes, while this may be the most important metric for young landlords to master, your net operating income (NOI) is your bread and butter.
Whether you’re looking at a new deal or managing an existing one, your NOI’s your bottom line. It’s your indicator of asset value. It’s what lets you know, ultimately, whether you have a good deal on your hands or not.
Here’s a 68-second breakdown of NOI and why it matters.
Hopefully now you have a better understanding of NOI and why it’s so important for investors to understand. But if you have any outstanding questions, ask them in the comments below.
Do you have anything else to add about the importance of understanding your NOI?
Share your ideas below!