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How Net Operating Income is Used in Real Estate Analysis

In this article, we want to discuss the role of net operating income to real estate analysis. How it’s calculated and then how real estate analysts use net operating income to determine the profitability of investment real estate.

Net operating income (or NOI) is one of the most important calculations made during the analysis of any real estate investment because it represents the property’s potential income after all vacancy and operating expenses have been subtracted. In other words, net operating income virtually represents the income property’s

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