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Total Operating Expenses

Sum of all property operating costs (taxes, insurance, management, maintenance, CapEx, HOA, utilities)

Example Result

Sample Data
$11,924

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Total Operating Expenses Formula

Monthly Total Operating Expenses ÷ 12 $994/mo
+ Insurance $1,925
+ Management $2,599
+ Maintenance $1,625
+ CapEx $0
+ HOA $0
+ Utilities $0
= Total Operating Expenses $11,924

What This Means

A sample property priced at $385,000 with $2,850/month rent has a total operating expenses of $11,924 at Purchase (Month 0). Your total operating expense load drives the Operating Expense Ratio and Net Operating Income. Keeping operating expenses low relative to income is a key indicator of an efficiently run property.

Where This Value Comes From

Total Operating Expenses is not entered directly — it is calculated from Property Taxes, Insurance, HOA Fees, Monthly Utilities, Maintenance, Property Management, CapEx Reserve Annual, Other Expense 1, and Other Expense 2. See the formula breakdown above and the detailed inputs below.

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Why It Matters

Your total operating expense load drives the Operating Expense Ratio and Net Operating Income. Keeping operating expenses low relative to income is a key indicator of an efficiently run property.

Detailed Explanation

Total Operating Expenses is the annual sum of all costs required to operate the property, excluding debt service. It includes property taxes, insurance, management fees, maintenance reserves, CapEx reserves, HOA dues, utilities, and any other recurring operating costs. This is the numerator in the Operating Expense Ratio and a key input for Net Operating Income.

Example

Sample Result
$12,750

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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