Spendable Income
Definition of "Spendable income"
Net amount of cash than an investor requires from an income-producing property, after taxes, for a period of time, usually a year. It is computed by accumulating all rental receipts for the period and deducting from them all cash-related expenditures applicable to the property, such as the mortgage principal payments, mortgage interest, insurances, taxes. Depreciation, a noncash expenditure, is deducted initially for purposes of computing operating income upon which income taxes are based. However, since it is a noncash expenditure, it is in the end added back to get spendable income.
Popular Real Estate Terms
Siding made out of aluminum, plastic derivates, or cement asbestos having ridges and valleys which is attached to the sides of buildings. ...
Heterogeneous (as opposed to homogenous) means diverse in nature applied to a place or object composed of separate and distinct parts. In other words, heterogeneous describes something that ...
Expecting or looking forward to something happening. ...
An assurance a loan's financial obligation will be secured by a third party. ...
Concrete with steel rods inserted into it to provide additional working load support. The premise is that both materials will act together in resisting loan stress. ...
Similar property. Comparing like property. properties that are side by side but do not meet. They are in the same direction with a constant distance. ...
Market where mortgage loans can be sold to investors. The availability of funds for financing real estate is affected by economic conditions, both local and national. The result is that at ...
The term accusation refers to a declaration made by an individual about another individual or entity having behaved in an immoral, improper, or wrong manner. The two parts of an accusation ...
Claude in a contract, title, or mortgage that is subject to being annulled, repealed, or revoked upon the satisfaction of a claim or completion of a future event. ...
Have a question or comment?
We're here to help.