Gross Income Multiplier

Definition of "Gross income multiplier"

Method to compute the price of an income-producing property by dividing the asking price of the property by current gross rental income. A property in a comparable neighborhood may be valued at "12 times annual gross". If its annual gross rental income amounts to $40,000, the value would be taken as $480,000.

Search Real Estate Glossary

Related Real Estate Glossary terms

Contingent Vesting

Right to property depends on some occurrence. ...

National Association Of Public Insurance Adjusters

Trade association whose objective is to further the interests of its membership, as well as to infor ...

Offer And Acceptance

Submission of the application and the first premium by the prospective insured the "offer" and the i ...

Fully Indexed Rate

Interest rate on an adjustable rate mortgage based on the total of the current value of an index and ...

Formica

Trade name by the American Cyanamid Corporation for a plastic laminate surfacing material widely use ...

Stacking

Circumstance under which the insured maintains that, if an insurance policy covers at least two sche ...

Related Real Estate FAQ

What Is A Credit Report?

A credit report is a report of all your debt information compiled by an independent agency. The cred ...

What Is An Escrow Officer?

An escrow officer - also known as a loan officer - is the person that walks you through the closing ...

What Do I Need To Know About Term Life Insurance?

Provides financial protection for a limited, specified period of time, at a lower cost than permanen ...

What Do I Need To Know About Homeowners Insurance?

It is where you live and where your possessions are. Chances are, it\'s your asset. But more than po ...

What Are Prepayment Penalties?

A penalty fee charged for paying off a mortgage early, thus allowing banks to still make money off o ...

What Is A Loan-to-value (LTD) Ratio?

A loan-to-value ratio is used by lenders to state how much you have financed. If you put down 20 per ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews

Agents join here

Add our widget on your Website

Real Estate Advice

10 Tips for Homebuyers Home Prices - The Extra Costs What Costs Do Buyers and Sellers Pay On Big Day When Escrow Closes? Build or Buy? That’s the Big Question How To Choose A Realtor

FAQ

Should I Pay Points for a Lower Rate? Should I Pay Extra Each Month? What is a mortgage banker? How much Life Insurance do I need? What are the benefits of Commercial Auto Insurance?