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Potential Gross Income Multiplier [4005] |
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An apartment that recently sold for $500,000 has potential gross rent of $100,000. Vacancies and collection losses are expected to be 10% of the gross rent. What is the potential gross income multiplier?
Potential Gross Income Multiplier = Value ÷ Potential Gross Income
$500,000 ÷ $100,000 = 5 Vacancy and collection losses are not considered when estimating the potential gross income multiplier. |