Since the condo building pays for things like sewar, water and garbage pickup, there’s no need to factor any of these expenses in as a condo investor. Furthermore, let’s assume this property will be managed directly by the owner, hence no property management fee. There are no maintenance or repairs of substance to note, and we’ll assume a vacancy rate of 0% due to how hot the Miami real estate market is. The unit is a great condition, and also comes with furniture included so it’s ready to rent out, and at a higher rate because it’s furnished. Let’s use the higher and more conservative tax number. For property taxes, the TRIM notice states $11,785.74 if the new budget is adopted, or $11,326.03 if no budget change is adopted. For expenses, the unit has common charges of $1,161.47 per month, or $13,937.64 per year. Let’s do an example of a high floor, 05 line at the Biscayne Beach Condominium in the Miami neighborhood of Edgewater that should rent for at least $7,000 a month as of this writing. NOI can be expressed as a monthly or yearly income figure, but the latter is more common to see. Subtract operating expenses from revenue As you might expect, simply subtract your total operating expenses from your total revenue to get your net operating income, or NOI.
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