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
The spouse's legal right, upon the death of his wife (or her husband), to a life estate in all lands she (or he) owned. ...
The legal requirement of a debtor, obligor, to pay a debt and the legal right of a creditor, obligee, to demand satisfaction of a debt or enforce payment in the event of default. ...
The smallest lot area required for building under the municipal zoning code. For example, a municipal zoning code requires all building lots to have a minimum lot area of 1/4 of an acre in ...
Investments, usually in limited partnership, that can protect of defer shelter) part of the income from current taxes. Under current law, passive leases can be applied up to passive income. ...
Generally speaking, an affidavit is a written statement or declaration, made under oath before a licensed individual, such as a notary public or even a Judge. You’ve probably heard ...
Appraisal concept stating the value a particular improvement contributes to the overall value of a property irrespective of its actual cost. ...
One to whom a gift or bequest is made. ...
Molding used in corners simulating a quarter of a circle. ...
Same as term prospectus: Document that must accompany a new issue of securities for a real estate company or partnership. It includes the same information in the registration statement, ...
Have a question or comment?
We're here to help.