How to Calculate Net Operating Income on Rental Properties

Annual Net Operating Income

Annual Gross Operating Income $26,888
- Annual Operating Expenses - $10,097
Annual Net Operating Income = $16,791

Net Operating Income is how much money you're making from the property after vacancy and all the Operating Expenses except for the financing expenses on the property (like the mortgage payment and, if applicable, private mortgage insurance).

For Typical 25% Down Payment Gainesville, Florida Rental Property we would use the Gross Operating Income of $26,888.40 per year and subtract out all the Operating Expenses of $10,097.44 for the year.

That would result in a Net Operating Income of $16,790.96 per year or $1,399.25 per month.

Annual Net Operating Income

Annual Gross Operating Income $26,888
- Annual Operating Expenses - $10,097
Annual Net Operating Income = $16,791

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