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How To Calculate Gross Potential (GPI) Real Estate Income

By , About.com Guide

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:
  1. 3 units * $700/month = $2100
  2. $2100 * 12 = $25,200
  3. 3 units * $800/month = $2400
  4. $2400 * 12 = $28,800
  5. $25,200 + $28,800 = $54,000 Annual income. This is our GPI.
Tips:
  1. Remember that we are assuming full occupancy and all payments made.
  2. Get the top calculations on our real estate investment calculation spreadsheet.
  3. We now have a forum for real estate investors to discuss strategies, share knowledge and have fun talking real estate investment. Join the forum now.
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