Marginal property refers to real estate that is barely profitable to use, indicating that the costs of operation, development, or purchase nearly equal or surpass the potential revenue or gains from the property.
Net Income Before Recapture, also referred to as Net Operating Income (NOI), represents a real estate property's revenue minus all operating expenses, excluding income taxes and financing costs. It provides a useful metric for real estate investors to gauge a property’s profitability and investment potential before tax considerations and possible recapture of depreciation.
