Can I depend on the NOI (net operating income)as a true value indicator
Thoughts to ponder if investing in real estate
NOI, which stands for Net Operating income is not a true value indicator. There are too many variables in determining NOI. Looking at the net operating income is just a starting point. Questions I ask for example: Has a management fee been included in the expenses? Is there deferred maintenance? Is the income derived from a tenant base that is paying market rent? How strong is the tenant base and how long of down time would I have if I lose a tenant. I have never found two deals alike there are always some determining factors that you have to consider. This is the type of business that is in my comfort zone. If you are thinking of investing, I would like to be part of your team. I can work on projects in Florida and NY as I am a commercial real estate broker in both states.