Long-term financing is generally more suitable for an apartment building that has established rental operations than for a property still undergoing major renovation or lease-up. Before applying, investors should understand whether the…
Should You Refinance a Multifamily Property When Its NOI Improves?
An improvement in Net Operating Income can change the financial position of an apartment building. Higher rental collections, reduced vacancy or better expense management may strengthen the property’s operating performance. For an…
What Financial Records Should You Review Before Financing a Multifamily Property?
A seller’s income estimate is not enough to establish whether an apartment building is financially sound. Before arranging financing, investors should review the records that explain how the property earns income and…
How NOI and Cap Rates Work Together When Valuing an Apartment Building
Net Operating Income is not only useful for assessing rental performance; it also plays an important role in estimating the value of an income-producing apartment building. One common valuation measure is the…
How to Improve NOI Without Overlooking the Costs of Apartment Operations
Increasing the Net Operating Income of an apartment building is not simply a matter of raising rents. Investors need to improve the property’s income while managing the expenses required to operate it….
How Occupancy Levels Influence NOI and Multifamily Financing
An apartment building’s unit count does not tell you how much rental income it is currently producing. Occupancy plays a major role because vacant units generally mean lost rental revenue, while occupied…
How DSCR Connects NOI to Multifamily Loan Qualification
Net Operating Income tells you how much income a multifamily property generates after operating expenses. Debt Service Coverage Ratio (DSCR) takes that figure a step further by comparing the property’s NOI with…
How Operating Expenses Can Reduce the NOI of a Multifamily Investment Property
Two apartment buildings with similar unit counts and rental income can have very different financial performance because their operating expenses are not necessarily the same. One property may have newer systems, efficient…
Why Gross Rental Income Is Not the Same as NOI for an Apartment Building
A multifamily property may advertise a high annual rental income, but that number does not tell you how much the building earns after paying its operating costs. Gross rental income represents the…
How to Calculate NOI Before Applying for a Multifamily Property Loan
Before applying for financing on an apartment building, you need to understand how much income the property actually generates. Net Operating Income (NOI) is one of the most important figures in multifamily…