Property Valuation
Potential gross income (PGI) in an income analysis assumes:
AThe property is 50% occupied
B100% occupancy at market rents✓ Correct
COccupancy net of vacancy
DOnly existing tenant income
Explanation
Potential Gross Income is the total income the property would generate at 100% occupancy at market rents. From PGI, vacancy and credit loss is subtracted to arrive at Effective Gross Income.
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