Gross Income Operating Income
Question: Determine the Gross Potential Income?
Determine the Gross Potential Income (GPI) for the following multi-family property. 35 eff $500 per Mo. 505 sq. ft. 40 1-1s $620 per Mo. 625 sq. ft. 25 2-2s $810 per Mo. 900 sq. ft. Assume a 5 percent vacancy loss for the property. Their other income is $1,877, and operating expenses are $19,703. The Property debt service is $22,643. What is their break-even ratio?
Answer: Income capitalization approach
The income capitalization approach, often simply called the income approach, is used to value commercial and investment properties. This approach capitalizes an income stream into a present value. This can be done using revenue multipliers or single-year capitalization rates of the net operating income. The Net operating income (NOI) is gross potential income (GPI), less vacancy (= Effective Gross Income) less operating expenses (but excluding debt service or depreciation charges applied by accountants).Alternatively, multiple years of net operating income can be valued by a discounted cash flow analysis (DCF) model. The DCF model is widely used to value larger and more expensive income-producing properties, such as large office towers.
Just Energy Income Fund: Third Quarter Results for 3 Months and 9 Months Ended December 31, 2009
QUARTERLY OPERATING RESULTS IN LINE WITH GUIDANCE JUST ENERGY INCOME FUND TO CONVERT TO CORPORATION MAINTAINING CURRENT PAYOUT
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