Non-Operating Expenses

Non-operating expenses are costs excluded from net operating income because they reflect financing, tax, or capital decisions rather than the property's operations: debt service (principal and interest), income taxes, depreciation, and capital expenditures like a roof, an HVAC system, or a full unit remodel. Many investors also fund replacement reserves against those future capital needs.

Why the separation exists

NOI measures the property's operating strength; non-operating expenses determine the deal's cash flow, tax picture, and long-term capital needs. Two investors can own identical buildings with identical NOI and have completely different cash flow, purely from financing and tax circumstances. Keeping the categories separate lets you compare properties consistently, then evaluate your deal on top.

Where you'll see it in Rescover

The APOD table draws the line explicitly: NOI first, then debt service and capital items, ending in net cash flow. Financing inputs and CapEx assumptions are editable, so the deal math is yours, not a template's.