Property Valuation
What is 'effective gross income' in property valuation?
APGI minus vacancy and credit loss allowance, plus other income✓ Correct
BPGI plus all operating expenses
CNet operating income before debt service
DPGI as reported on the property's rent roll
Explanation
Effective gross income (EGI) = Potential Gross Income (PGI) − Vacancy and Credit Loss + Other Income (parking, laundry, etc.). It represents the income realistically expected to be collected.
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