The numbers below are from the current analysis. Ratios do not take into account all of the cash flows, and are not a discounted cash flow measure like NPV, hence do not reflect the true yield for the analysis. Cash flows with the * symbol are partial years where the partial number has been divided by the number of months and multipled by 12.
	2001	2002	2003	2004	2005
Net Operating Income	$74,400	$83,822	$91,345	$92,975	$94,720
= NOI/Property Value	0	0	0	0	0

NOI/Property Value is the Net Operating Income divided by the Sale Value. This ratio is also known as the overall capitalization rate, which tests the assumed appreciation of the property.

Considers:

Sale Value, Scheduled Income(Current Year Only), Vacancies (Current Year Only), Expenses (Current Year Only)

Ignores:

Sale Proceeds, All Financing (Loans), Other Years NOI, All Taxes

... and a lot of other things

Why is NOI/Property Value useful?

The NOI/Property Value ratio is also known as the overall capitalization rate, which tests the assumption for the appreciation of the property. The only difference between this ratio and the Capitalization Rate is that the Capitalization Rate uses the original purchase price, and the NOI/Property Value uses the sale value at the end of the year that the NOI/Property Value ratio is calculating.

What is the NOI/Property Value Sensitive to:

Sale Value, Scheduled Income(Current Year Only), Vacancies (Current Year Only), Expenses (Current Year Only)