Property Valuation
Effective gross income (EGI) in Michigan property analysis equals:
AGross potential rent only
BGross potential rent minus vacancy and credit loss✓ Correct
CNet operating income plus expenses
DGross potential rent plus expenses
Explanation
Effective gross income = Gross potential rent (PGI) minus vacancy and credit loss allowances. It represents the actual income the property is expected to generate, accounting for realistic vacancy rates.
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