Net operating income measures the ability of a property to produce an income stream from operation.
Reserves for Replacement — Reserves are funds set aside for major future maintenance items, such as a roof replacement, or air conditioning repair.
But Shin proposed a magic fight instead, offering only to pay if Noi managed to defeat him.
When determining the net operating income, it is important to differentiate between costs that are unique to the property itself and costs that are specific to the investor.