What Is The Differance?
I am looking to by some rental property. I keep seeing Gross operating income and Net operating income.
I know the differance between gross and net but I was wondering if someone could clarify the differances between the two. Also does your mortgage payment fall into one of those two catagories?
Thanks
Tim 
Effective Gross Income is every last dollar you take in from rents and late fees, less an allowance for vacancy & collection loss.
Net Operating Income is what's left after ad valorem taxes, insurance, and all other expenses except debt service.
Debt service is yet another category that reduces NOI to plain 'ol pretax net income. If you take income taxes out of that you have net after taxes--which may be negative despite positive cash flow, owing to depreciation.