... byGAAP. The standards for GAAP are prescribed by authoritative bodies such THE COMPLETE GUIDE TO BUYING AND SELLING APARTMENT BUILDINGS102as the Financial Accounting Standards Board (FASB). These ... income available to service anyassociated debt—that is, to make any loan payments. Finally, net operatingincome is the numerator in the quotient used to calculate the capitalizationrate, which ... loan that is reduced each year by payments that are applied to the remaining loan balance, or the principal portion of the loan payment. The total ROI is the ratio of the remaining cash after...