Property Valuation
The effective gross income (EGI) of a rental property is calculated as:
APotential gross income minus vacancy and credit loss✓ Correct
BNet operating income plus depreciation
CGross rent plus operating expenses
DNet income minus mortgage payments
Explanation
EGI = Potential Gross Income (PGI) − Vacancy and Collection Loss + Other income. It represents the actual income the property is expected to generate.
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