AND ANSWERS
Potential Gross Income (PGI) - ans-Units x months x rent$=
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Net Operating Income (NOI) - ans-Effective Gross Income - Operating Expenses =
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Effective Gross Income (EGI) - ans-Potential gross income -
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Vacancy&Collection Loss @ x%
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Operating Expense Ratio (OER) - ans-Operating expenses / effective gross income =
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Net Income Ratio (NIR) - ans-Operating expense ratio or net operating income /
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effective gross income =
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Effective Gross Income Multiplier (EGIM) - ans-Sale price / effective gross income
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Overall capitalization rate - ans-Net income ratio / gross income multiplier =
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