Hassle-free Cashflow Minute Lesson 4: Operating Expenses

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Hassle-free Cashflow Minute Investor Educational Series by Professional Investor / Developer David Campbell www.HassleFreeCashFlowInvesting.com ©2011 All Rights Reserved Lesson 4: Operating Expenses

description

David Campbell reviews common operating expeneses associated with a property. Ask for copies of operating income & expenses when analyzing a property to purchase.

Transcript of Hassle-free Cashflow Minute Lesson 4: Operating Expenses

Page 1: Hassle-free Cashflow Minute Lesson 4:  Operating Expenses

Hassle-free Cashflow Minute

Investor Educational Series by Professional Investor / Developer

David Campbell

www.HassleFreeCashFlowInvesting.com©2011 All Rights Reserved

Lesson 4: Operating Expenses

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(from lesson 3)

Net Operating Income (NOI)Adjusted Gross Income less

Operating Expenses

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(from lesson 3)

Adjusted Gross IncomeGross Scheduled Income less

vacancy rate rent concessions

loss to lease

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Operating ExpensesProperty Taxes

Liability / Casualty InsuranceProperty Maintenance

Management: Onsite / OffsiteUtilities: Occupied / Vacant

Landscaping / Lawn CareCost of Entity Maintenance / Annual Filing Fees

Accounting / Tax PreparationReplacement Reserve

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Case Study: operating expenses

$10,560 Adjusted Gross Income- $3,000 property taxes

- $560 insurance- $1,000 maintenance / replacement reserve

- $1,000 property management$5,000 NOI

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David Campbell$500 million of real estate

experience

real estate investor / developer houses / apartments

retail / office / land / resortcondos / condo conversion

financial strategist