Hassle-free Cashflow Minute Lesson 4: Operating Expenses

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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.

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Hassle-free Cashflow Minute Lesson 4: Operating Expenses

  1. 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. 2. (from lesson 3)Net Operating Income (NOI) Adjusted Gross Income less Operating Expenses www.HassleFreeCashFlowInvesting.com
  3. 3. (from lesson 3)Adjusted Gross IncomeGross Scheduled Income less vacancy rate rent concessions loss to lease www.HassleFreeCashFlowInvesting.com
  4. 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. 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. 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

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