/Tag: Potential Gross Income
19 10, 2018

What Is Effective Gross Income?

By |2018-10-18T12:28:49+00:00October 19th, 2018|Categories: Hard Money, Hard Money Loans, Investing, Investment, Investment Properties, Investments, Leases, Leasing Your Property|Tags: , |0 Comments

Have you heard the term, "Effective Gross Income?" If you're starting out in real estate investing in Georgia or the Carolinas, you may hear this term. Also called, "EGI," it's the income that you'd have when you subtract losses of income from vacancy, concessions, model units, legal fees, employees, and bad debt. The reason it's important to know an apartment complex's Effective Gross Income is extremely telling. You don't only want to consider the Gross Potential Income. You'll also want to add in revenue generated from other things like coin-operated laundry, parking, or concessions. In order to determine your property's