Respuesta :
The Profitability compares the total investment in the property with the net operating income (noi).
A formula known as net operating income (NOI) is used to assess the profitability of real estate assets that produce income. NOI is the sum of all property revenues less all running costs that are deemed to be reasonably reasonable.
On a property's income and cash flow statement, NOI is a before-tax statistic that does not include loan principal and interest payments, capital expenses, depreciation, or amortization. Earnings before interest and taxes, or "EBIT," is the name given to this measure when it is applied to other industries.
Real estate experts utilize net operating income as a method of valuation to establish the exact value of their properties that generate money. The operational costs of a property must be deducted from the income it generates in order to determine NOI.
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