a three-unit property has monthly market rents of $600, $850, and $1,000 for its units. the applicable vacancy rate is 6%. annual debt service is $12,000. what is the effective gross income (egi)?

The Federal Housing Administration (FHA) considers a borrower's effective income when determining their eligibility for a mortgage. On tax forms, the gross income is frequently listed and might include things like salary, hourly pay, overtime pay, tips, commissions, and more.

How is effective gross revenue determined?

Having knowledge about effective gross income (EGI)

By combining prospective gross rental income with other sources of income and deducting vacancy and credit charges from a rental property, effective gross income is calculated.
EGI is crucial in assessing a rental property's worth and the actual positive cash flow it may provide.

How is NOI determined?

Before deducting any expenditures for financing or taxes, net operational income assesses the profitability of an income-producing asset. Subtract all property-related operating costs from all income earned at the property to arrive at NOI.

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