Given the following information, what is the effective gross income?
Property: 4 office units
Contract rents per unit: $2500 per month
Vacancy and collection losses: 15%
Operating expenses: 35%
Potential Gross Income=4 office units * $2,500 per month per unit=$10,000
Minus: Vacancy and collection losses (15%)=.15 * ...
The effective gross income is calculated for office rental units.