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Investment DictionaryNOI (Net Operating Income)
What the property earns after operating costs and before financing. The number underneath cap rate, DSCR, and value.
Net operating income is what a property generates after all operating expenses, before any loan payments.
NOI = gross_income - operating_expenses
Gross income includes rent plus extras like parking, laundry, or storage. Operating expenses include property taxes, insurance, maintenance, repairs, utilities, and management. Debt service is deliberately excluded: NOI describes the property, not your financing.
A property collecting $100,000 with $30,000 of operating expenses has a $70,000 NOI.
Why NOI is the keystone
Cap rate is NOI divided by price. DSCR is NOI divided by debt service. Valuation by cap rate is NOI divided by the market's rate. Get NOI wrong, even slightly, and every downstream number is wrong with it. That's why realistic expense assumptions matter more than optimistic ones.
Where you'll see it in Rescover
Every analysis builds NOI from visible, editable inputs: the rent (with its RentCast comps), taxes and insurance from the public record, and your own vacancy and expense assumptions. Change an input and NOI recomputes, along with everything built on it.
Amortization (Loan Paydown)
Every mortgage payment quietly buys back a piece of your property. That's equity you didn't have to write a check for.
APOD (Annual Property Operating Data)
The one-page financial statement of a rental - income at the top, cash flow at the bottom, every deduction visible in between.
Cap Rate
Net operating income divided by price. The speed of the return, before financing.
See it with your own numbers.
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