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What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, Updated Edition, 2nd Edition by Frank Gallinelli

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CHAPTER 14Calculation 8: Gross Operating Income (Effective Gross Income)

What It Means

The gross operating income (GOI) (also called effective gross income, or EGI) equals the property’s annual gross scheduled income less vacancy and credit loss. GOI is not the property’s potential income, but represents instead the actual income that you expect to collect.

If you’ve read the previous two chapters about gross scheduled income and vacancy and credit loss, then you should implicitly understand GOI; it is simply the difference between those two amounts. We won’t belabor the term here but will just provide a quick review of the calculation. If you haven’t done so already, you should read the previous two chapters.

How to Calculate

Gross Operating ...

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