Net operating Income (NOI) is an important number in real estate investing because it is used in two very important real estate ratios, The Capitalization Rate (CAP Rate) and the Debt Service Coverage Ratio (DSCR). The Net Operating Income is calculated by taking all of a property's Operating Incomes such as: Rents Parking revenues Laundry revenues Vending revenues Any other incomes received and then deducting all of the property's Operating Expenses such as:  Property Taxes Insurance Maintenance & Repair Costs Caretaking & Management Fees Snow & Garbage Removal Costs Utility Costs Supplies Vacancy Costs Advertising Costs Accounting Fees Legal Fees Security Costs Annual Fire Alarm Testing Costs Any Other Operating Expenses Please note that Operating Expenses DO NOT INCLUDE Debt Service,... 08/15/2010