Level 5 Real Estate Calculations Flashcards
1
Q
the estimated total annual income that a property produces
A
effective gross income
EGI
2
Q
the ratio of the price of investment property to its annual income before considering expenses like taxes and insurance
A
gross income multiplier
3
Q
a property’s annual income that remains after paying its operating costs
A
net operating income
4
Q
the total rental income a property would receive if the
property was 100% leased
A
potential gross income
5
Q
the loss a property receives due to vacancies or collections
A
vacancy costs
6
Q
the percentage of profit from a loan
A
yield
