The 'effective gross income' (EGI) for a NC rental property is calculated as:
Why Potential Gross Income minus Vacancy Loss and Collection Loss, plus Miscellaneous Income Is Correct
Answer B: Potential Gross Income minus Vacancy Loss and Collection Loss, plus Miscellaneous Income
Exam Tip: Property Management
Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.
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Key Terms to Know
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Math Concepts
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