Look at the potential gross income
for the project as recorded for the current month compared with the prior several months.
The effective gross income multiplier (EGIM) and potential gross income
multiplier (PGIM) should be compared with market norms for the property type.
Load the capitalization rate for the equalized ETR; Potential gross Income (PGI) $125,000 Less vacancy and credit loss [at] 10% - $ 12,500 Effective gross Income (EGI) $112,500 Less operating expenses Property tax expense $0 Other operating expense $21,565 Total operating expenses $ 21,565 Adjusted net operating Income (NOI) $ 90,935 Add the equalized ETR to the capitalization rate as follows: Market capitalization rate 0.
In some situations, an appraiser may believe that an expense item is more related to the value of the property than to its potential gross income (PGI) or effective gross income (EGI).
The potential gross income
(PGI) is the sum of the market rent and the reimbursements, or $6.
A distinction is made between gross rent multipliers (GRMs) and GIMs as well as between potential gross income multipliers (PGIMs) and effective gross income multipliers (EGIMs).
Apartment Building Potential gross income $500,000 less vacancy and collection loss $ 25,000 Effective gross income $475,000 Sale price $2,500,000 PGIM $2,500,000/$500,000 = 5 EGIM $2,500,000/$475,000 = 5.
0~s from comparable sales and potential gross income
multipliers (PGIMs) in Table 2.
the potential gross income
, effective gross income, and gross rent.