Property Valuation
Gross Potential Income (GPI) in real estate income analysis represents:
AThe income remaining after vacancy losses and all operating expenses
BThe maximum income a property could generate if fully occupied at market rents with no vacancies✓ Correct
CThe actual income collected from tenants during the past 12 months
DThe income after deducting mortgage debt service
Explanation
GPI (also called Gross Scheduled Income) is the theoretical maximum rental income assuming 100% occupancy at market rents. Effective Gross Income is calculated by subtracting vacancy and credit losses from GPI.
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