Property Valuation
The effective gross income (EGI) of a NJ rental property is calculated as:
AGross potential income minus operating expenses
BGross potential income minus vacancy and credit losses plus other income✓ Correct
CNet operating income plus debt service
DGross rent multiplier times monthly rent
Explanation
EGI = Gross Potential Income (GPI) – Vacancy & Credit Loss + Other Income (e.g., parking, laundry). It represents the realistic income the property generates.
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