Let's Define Net Operating Income (NOI)

The Net Operating Income (NOI) of a property is very simple to figure out. It is defined as follows:
Potential Gross Income=The total amount of money a property could make
-Vacancy and Credit Loss= subtract any empty space or tenants in place that haven't paid.
-Operating Expenses= subtract actual expenses on the property i.e. Utilities, Taxes, Insurance, maintenance, employees, etc. (this does not include the mortgage or income taxes)
=Net Operating Income