This one is relatively simple. We want to know what income will be realized if a property is fully occupied and all rents are collected. We take number of units times annual rent for a total.
Example: An apartment complex with six units. Three rent for $700 per month and the other three rent for $800 per month.
Difficulty: Easy
Time Required: 5 minutes
Here's How:
- 3 units * $700/month = $2100
- $2100 * 12 = $25,200
- 3 units * $800/month = $2400
- $2400 * 12 = $28,800
- $25,200 + $28,800 = $54,000 Annual income. This is our GPI.
Tips:
- Remember that we are assuming full occupancy and all payments made.
- Get the top calculations on our real estate investment calculation spreadsheet.
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What You Need:
- Calculator
