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Real Estate Glossary

Effective Gross Income

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Written by Luis Escobar

This is calculated by adding the potential rental gross income and other income and subsequently subtracting the credit costs and vacancy of a property. Effective gross income establishes the value of a rental property and the cash flow it could possibly generate.

This is calculated by adding the potential rental gross income and other income and subsequently subtracting the credit costs and vacancy of a property. Effective gross income establishes the value of a rental property and the cash flow it could possibly generate.

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Luis Escobar

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