NOI (Net Operating Income)
Net operating income is a property's income after operating expenses but before debt service and capital items. It drives cap rate, valuation, and DSCR.
NOI (net operating income) is a property's income after operating expenses but before debt service, capital expenditures, and income tax: effective gross income (rent minus vacancy/credit loss, plus other income) minus operating expenses.
It's the engine behind everything else — cap rate (NOI ÷ price), valuation (NOI ÷ exit cap), and DSCR (NOI ÷ debt service) all start here.
Why it matters: small NOI assumptions compound into large price differences. The two NOI traps are (1) showing NOI before replacement reserves, which flatters yield, and (2) on NNN/IOS deals, conflating gross (broker) NOI with true NOI after the landlord's actual expenses.
UpsideIQ computes NOI on real economics — pre/post-reserves and broker vs true — so the number you act on is the one you'll keep.
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