Hassle-free Cashflow Minute Lesson 4: Operating Expenses

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    29-Nov-2014
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    Real Estate

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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

  • 1. Hassle-free Cashflow Minute Lesson 4: Operating Expenses Investor Educational Series by Professional Investor / Developer David Campbell www.HassleFreeCashFlowInvesting.com 2011 All Rights Reserved
  • 2. (from lesson 3)Net Operating Income (NOI) Adjusted Gross Income less Operating Expenses www.HassleFreeCashFlowInvesting.com
  • 3. (from lesson 3)Adjusted Gross IncomeGross Scheduled Income less vacancy rate rent concessions loss to lease www.HassleFreeCashFlowInvesting.com
  • 4. Operating Expenses Property Taxes Liability / Casualty Insurance Property Maintenance Management: Onsite / Offsite Utilities: Occupied / Vacant Landscaping / Lawn CareCost of Entity Maintenance / Annual Filing Fees Accounting / Tax Preparation Replacement Reserve www.HassleFreeCashFlowInvesting.com
  • 5. 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 www.HassleFreeCashFlowInvesting.com
  • 6. David Campbell $500 million of real estate experience real estate investor / developer houses / apartments retail / office / land / resort condos / condo conversion financial strategistwww.HassleFreeCashFlowInvesting.com