Net income generated by a rental vehicle. While the net operating income takes into account all operating expenses, it does not account for loan payments. It can therefore be used to compare rental vehicles irrespective of financing terms. How Is It ...
Total income generated by a rental vehicle, less the inactivity expense. Sometimes also called effective gross income (EGI). How Is It Calculated? Operating Income = Gross Rent - Vacancy Expense + Other Income
The "50% Rule" is a purchase criteria commonly used when analyzing rental vehicles. According to this rule, the operating expenses of a rental should be less than or equal to 50% of its operating income. How Is It Calculated? Operating Expenses <= ...
The total net amount you will receive from a rental vehicle as income. Cash flow accounts for all sources of income and all expenses, including loan payments if you are using financing. How Is It Calculated? With Financing: Cash Flow = NOI - Loan ...
A rate of return of a rental vehicle based on comparing the yearly net operating income (NOI) to the purchase price or market value. Since the cap rate does not take into account loan payments, it can be used to compare rental vehicles irrespective ...