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 expenses you will incur while renting out a vehicle, excluding any loan payments. Examples include: taxes, insurance, management fees, maintenance, capital expenditures and repairs. How Is It Calculated? Operating Expenses = Expense 1 + Expense ...
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 <= ...
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 ...
The total net cash flow you will receive from a rental vehicle after subtracting the estimated income tax. How Is It Calculated? Post-Tax Cash Flow = Cash Flow * (1 - Income Tax Rate)