hassle-free cashflow minute lesson 3: calculating income: agi, gsi, noi

Hassle-free Cashflow Minute

Investor Educational Series by Professional Investor / Developer

David Campbell

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Lesson 3: Gross Scheduled Income (GSI)Adjusted Gross Income (AGI)Net Operating Income (NOI)

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Gross Scheduled Income

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Gross Scheduled Income (GSI)All income from the property assuming 100% occupancy at

market rent with no rent concessions

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Case Study: Gross Scheduled Income

Market Rent: $1,000/month

$1,000 x 12 mos = $12,000 GSI

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Adjusted Gross Income (AGI)

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Adjusted Gross IncomeGross Scheduled Income less

vacancy rate rent concessions

loss to lease

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Case Study: Adjusted Gross Income (AGI)

$12,000 GSI-6% vacancy rate

-4% rent concession-2% loss to lease

$12,000 GSI x 88% = $10,560

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Net Operating Income (NOI)

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Net Operating IncomeAdjusted Gross Income less

Operating Expenses (see lesson 4)

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Case Study: Adjusted Gross Income (AGI)

$10,560 AGI- 50% operating expenses (see lesson 4)

$5,280 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