Usually paid by tenant, but landlords often pay water/sewer/trash. 📈 Phase 3: Key Performance Metrics Use these three formulas to see if the deal "pencils out." 1. Net Operating Income (NOI)
Benchmark: Usually ranges from 4% to 10% depending on the market. buy and hold real estate calculator
Why it matters: Shows the property's intrinsic ability to generate income. 2. Cap Rate (Capitalization Rate) (Annual NOI / Purchase Price) x 100 Usually paid by tenant, but landlords often pay