Month: May 2015

The key to any successful portfolio is diversification. Without getting into the details of modern day portfolio theory, it’s important to understand that by holding a combination of different asset types, an investor can achieve higher risk-adjusted returns. In other words, a portfolio of just stocks or bonds is not optimal. If the stock market crashes … Read more

1. Net Operating Income – NOI This is the one number that every income property owner should know as it’s an estimate of the annual income generated by a property. Although the formula is pretty straightforward, the devil’s in the details. NOI = Gross rent*(1 – Vacancy Rate) – Operating Expenses (such as Property Management, Maintenance, Insurance, Property Taxes, … Read more