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
Assures that the title is free of any legal claims including encumbrances. It includes covenants of seizin, freedom from encumbrance, express warranties of title, right to quiet enjoyment, ...
Written agreement between two or more parties to extend the terms of a document. ...
Unexpected increase in the price of property not due to any effort on the owner's part. An example is when the appraised value of a house increases because of a population increase in the ...
Modification made by a municipality to the zoning of a locality. A change in zoning typically has to be requested and approved by a zoning commission and then the legislative body. It can ...
Sewer system built into the streets of a neighborhood that is capable of accommodating the excess water flow of a heavy storm without backing up or flooding. ...
A municipal or county local government board that resolves zoning disputes. ...
Individuals who are legally entitled to inherit money and property when someone dies. ...
The interest rate charged for a loan. For example, John obtained a $10.000 loan from the bank charging 10% interest. ...
An early term used to describe all types of real estate property, improvements to the land, and all rights accruing to the land. ...
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