The Ultimate Guide to Gross Potential Income on Rental Properties

If you're looking to learn more about Gross Potential Income (also abbreviated as GPI) for rental properties, then check out our Ultimate Guide to Gross Potential Income on Rental Properties.

Gross Potential Income = Rent + Other Income

GPI is defined as the sum of all the rent and other income sources on a property.

It is the most the property could potentially earn before any expenses or vacancies.

Calculating Gross Potential Income

The following walks you through calculating Gross Potential Income on a rental property.

Annual Gross Potential Income

Annual Rent $27,720
+ Annual Other Income + $0
Annual Gross Potential Income = $27,720

Gross Potential Income is how much total income the property could possibly produce from all sources.

For Typical 25% Down Payment Gainesville, Florida Rental Property we take the total amount of rent they could collect and any additional income they might also get from the property.

The rent for Typical 25% Down Payment Gainesville, Florida Rental Property is estimated to be $2,310 per month or $27,720 per year. We'll use the annual amount of $27,720 for our calculation and we will, for now, ignore vacancies... we'll deal with vacancy when calculating Gross Operating Income.

We're estimating $0 in other income from the property.

Some common examples of other income might be: profits from on-site laundry (especially in multi-family), pet rent, renting out extra spaces on the property (like an extra garage or storage unit) or things like that.

That means that Typical 25% Down Payment Gainesville, Florida Rental Property has a Gross Potential Income of $27,720 per year.

Secondary Input

Gross Potential Income Secondary is considered a secondary input in the Hierarchy of Real Estate Metrics.

It is used to calculate Gross Operating Income Tertiary.

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