BiggerPockets Daily

Net operating income (NOI) is a vital real estate profitability metric to help you calculate an investment property’s potential revenue. The NOI provides valuable data to determine whether to purchase a property, predict potential rental income, or raise rents to boost cash flow.The NOI formula is straightforward. You deduct the operating expenses from the gross operating income (GOI) to calculate a property’s potential profitability. In other words, net operating income is the difference between how much the property costs to operate and the amount of revenue it generates.Net operating income doesn’t use expenses like debt payments, mortgage payments, depreciation, or capital expenditures in the calculation. However, it helps you compare properties when buying or selling real estate. As a result, some investors consider this to be the most critical metric in real estate investing. This article explains why NOI is important when making real estate investment decisions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you ever wonder how many mortgages you can have at once? In 2009, Fannie Mae updated its same borrower policy, amending the maximum number of conventional mortgages any one person can have from four to 10. However, qualifying and finding a lending institution that’ll give you more than four can be difficult. In this post, we’ll discuss what’s required to have multiple mortgages (including an example), the pros and cons of having multiple mortgages, and how to manage them. Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s a nightmare scenario for any landlord. The lease expires, and your tenant doesn’t move out on time. You are then faced with the complicated decision of legally removing the tenant. After all, you cannot change the locks, cut off utilities, harass them, or do a self-help eviction. While the tenant won’t leave the rental unit, you are probably not getting monthly rent payments. Unfortunately, the situation when a tenant stays on after the lease expires — called a holdover tenant — is all too common. What is worse — tenants’ rights mean you are limited in what you can do, despite being the legal property owner. It may seem that your only option is to start legal proceedings. But, as any landlord knows, the eviction process can be expensive and time-consuming. And there is no guarantee that you can recover unpaid rent.Are there better ways to remove a tenant who refuses to leave after the lease period expires? This article will help you know the answer to two vital questions:  How long can a tenant stay after the lease expires? What should you do if a tenant doesn’t move out on time? Understanding your legal position when a formal lease agreement expires is critical to answering these two questions.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Artificial intelligence has been around for decades, but it seemed a lot more innocuous when it was just playing checkers. ChatGPT, an AI language processing tool developed by OpenAI, can pass the bar exam. We’ve all seen and read enough science fiction material to feel a twinge of fear that robots may be coming for our jobs. But what’s more likely to happen over the coming decade is that AI will enhance our capabilities, making our work processes more efficient and giving us back that precious free time that is often the motivation for real estate professionals to build passive income streams. Of course, there are valid reasons to be concerned about ethics, safety, and human independence and agency as a result of this new technology. But so far, ChatGPT is proving to be an invaluable resource for real estate professionals in multiple aspects of their business. Understand its limitations and how to use it effectively, and you could build more wealth in less time or kick back and relax a little longer than you would otherwise. Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate agent earnings vary widely based on numerous factors, including experience, location, and niche. Some agents struggle to get by while others earn a comfortable living. However, some constants exist in how real estate agents work and get paid. For example, most real estate agents work on commission, which they earn at the end of a transaction.If you’re looking to become an agent or are just curious about how much realtors make, here’s what you should know. Learn more about your ad choices. Visit megaphone.fm/adchoices

A condo can be an attractive choice when purchasing an investment property, especially for first-time investors. They generally cost less than single-family homes and can be easier to maintain.However, whether or not they’re a good investment depends on several factors. Ready to learn more? Read on as we uncover the answers to common questions about investing in condos.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Managing rental properties is a complex task, especially when it comes to keeping track of which tenants are paying on time and who has outstanding balances. If you’re not maintaining an accurate paper trail and organizing your finances, your investment property can quickly become your greatest nightmare.A rent ledger is invaluable for property managers, landlords, and accountants, as it makes your life much easier when paying taxes and settling landlord and tenant disputes. In this article, we’ll discuss what a rent ledger is, how to create one, and the many benefits of having one.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate properties listed as “off-market” are not publicly listed for sale. However, that does not mean that you cannot buy off-market properties. You may discover a great and lucrative real estate investment if you know how to find off-market properties. What is the best way to find off-market sales? Are there advantages to searching off-market property sales for investment opportunities? What should you be careful of when buying a property off-market? This article answers these questions and many more.  Learn more about your ad choices. Visit megaphone.fm/adchoices

A wraparound mortgage is a financial option for real estate investors and traditional home buyers. In many cases, it can be a more desirable alternative to other non-conventional funding sources and can benefit both the buyer and seller. However, wraparound mortgages also come with their own set of risks, so you should be well-informed before getting into one.In this article, we’ll explain what a wraparound mortgage is, how they work, weigh the pros and cons, and discuss alternative loan options worth considering. What is a Wraparound Mortgage?With a wraparound mortgage, the buyer becomes responsible for paying the seller for the property’s total purchase price plus interest, based on the negotiated terms. A wraparound mortgage is basically a secondary mortgage or junior loan that an investor or home buyer takes out directly with the seller instead of a traditional bank or lending institution. Instead of trying to qualify for a loan, credit history checks, and meeting a conventional institution’s requirements, the buyer works out the loan and repayment conditions with the seller. Learn more about your ad choices. Visit megaphone.fm/adchoices

There are hundreds—if not thousands—of books on real estate, personal finance, personal development, and motivation. It’s likely you’ve heard of many of them, whether you read about them in an article or heard about them during a podcast. But what are the best real estate books for beginners?Successful real estate investors and entrepreneurs recommend everything from How to Win Friends and Influence People to The Millionaire Next Door. But deciding which book you should read first or next is a daunting task. Considering throwing up your hands and giving up? We understand—and so we did the heavy lifting. Learn more about your ad choices. Visit megaphone.fm/adchoices