Property Valuation
Iowa's 'effective gross income multiplier' (EGIM) in income property analysis is calculated as:
ANOI divided by market cap rate
BSale Price divided by Effective Gross Income✓ Correct
CGross potential income multiplied by vacancy rate
DOperating expenses divided by gross income
Explanation
EGIM = Sale Price / Effective Gross Income. It is a quick valuation metric that relates sale price to a property's actual (vacancy-adjusted) gross income. A lower EGIM may indicate a relatively lower purchase price relative to income.
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