Total Operating Expenses
All recurring costs: management + maintenance + capex + insurance + tax.
The sum of all operating expenses deducted from EGI to arrive at NOI. This is the number that separates napkin math from professional underwriting. Most beginners forget 2-3 of these line items.
Total OpEx = Management + Maintenance + CapEx + Insurance + Property Tax
Displayed in the Cashflow Waterfall section of analysis results.
$152 + $182 + $121 + $90 + $90 = $635/mo total opex
If your total opex is less than 35% of gross rent, you are probably missing something.
Property Management
Fee for a manager to handle tenants, repairs, and rent collection — default 10% of EGI.
Maintenance & Repairs Reserve
Reserve for routine repairs and upkeep — default 12% of EGI.
Capital Expenditure (CapEx) Reserve
Reserve for major replacements (roof, HVAC, appliances) — default 8% of EGI.
Net Operating Income (NOI)
Gross income minus operating expenses, BEFORE debt service.
Debt Service (Monthly Mortgage)
Monthly mortgage payment on the refinanced loan.
Educational content only. Consult a CPA or attorney for advice specific to your situation.