Effective Gross Income Multiplier [3029]

Home Previous Next

An apartment building has 20 units that rent for $500 monthly and 30 units that rent for $750 monthly. Collection loss is estimated at 3% and vacancy loss is estimated at 7%. The building recently sold for $3,600,000.

What is the effective gross income multiplier (EGIM)?

EGIM = Value (sale price) ÷ EGI

Units	Rent x 12	Total
20	$6,000	$120,000
30	$9,000	$270,000
Total Rent		$390,000
Less: Allowances @10%		$39,000
Effective Gross Income		$351,000

	Sale Price	$3,600,000
	EGIM	10.3

Georgia Appraiser Home Page | Reload