How to Calculate Gross Operating Income on Rental Properties

Annual Gross Operating Income

Annual Gross Potential Income $27,720
- Annual Vacancy Dollar - $832
Annual Gross Operating Income = $26,888

Gross Operating Income unlike Gross Potential Income does take into account the impact of vacancy on the property.

For Typical 25% Down Payment Gainesville, Florida Rental Property, we're estimating that the property is vacant 3% of the time. That means that we're not seeing $831.60 of the $27,720 that we thought we might get from the property.

Annual Gross Operating Income

Annual Gross Potential Income $27,720
- Annual Vacancy Dollar - $832
Annual Gross Operating Income = $26,888

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