Income after deducting vacancy, collection losses and adding in income from other sources that is available to pay expenses is referred to as:

Effective gross income

Explanation:

The income after vacancy, collection losses has been deducted and adding income from other sources that is available is added to pay expenses ia called the effective gross income.

Effective gross income can be calculated when the potential gross rental income is added with income and then the vacancy and the credit costs of a rental property is subtracted.

The effective gross income is important as it helps in determining the rental property value and also the true positive cash flow that can be produced.

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