Property Valuation
A Massachusetts property's effective gross income is calculated as:
APotential gross income minus vacancy and credit loss✓ Correct
BNet operating income plus depreciation
CGross rent minus mortgage payments
DTotal expenses divided by number of units
Explanation
Effective Gross Income (EGI) = Potential Gross Income (PGI) − Vacancy and Credit Loss. It represents the realistic income the property is expected to generate.
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