Net Operating Income (NOI) Revenue − Operating Expenses Pure operating performance. Excludes interest, depreciation. The standard metric for evaluating rental property profitability before financing.
NOI after Debt Service Revenue − Operating Expenses − Interest What the portfolio earns after paying the bills and the bank. Excludes depreciation (non-cash) and CapEx. Shows real cash earnings from operations after mortgage interest.
Cash Flow (incl. CapEx) Revenue − Operating Expenses − Interest − Capital Expenditures Total cash impact including major improvements and renovations that are capitalized to the balance sheet. Excludes depreciation (non-cash).
Net Income Revenue − All Expenses (OpEx + Interest + Depreciation) Bottom-line per the books. Matches the 1065 tax return (Book Net Income on Schedule M-1). Includes non-cash depreciation which reduces taxable income.
Operating Expenses include: R&M, Lawn Care, Insurance, Property Tax, Management Fee, HOA, Utilities, Legal/Professional, Tenant Locator, Storage, Travel, Office Supplies, Meals & Entertainment, Bank Charges, Taxes & Licenses, Other OpEx Data validated against 1065 tax returns for 2019–2024. Revenue and Net Income match within $1 for 5 of 6 years (2020 gap = Fort Smith K-1 external investment).