Property Valuation
Effective gross income (EGI) for an investment property is calculated as:
AGross potential income minus vacancy and credit losses✓ Correct
BNet operating income plus expenses
CGross potential income plus expenses
DNet income divided by cap rate
Explanation
EGI = Gross Potential Income − Vacancy and Collection Losses. It represents the actual income the property is expected to generate.
Related Alabama Property Valuation Questions
- Functional obsolescence in an Alabama property refers to:
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