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
A clearly stated notice that an owner or operator will not assume responsibility for an inherent risk. For example, at a parking garage, a large notice of nonresponsability clearly states ...
Reward for investing. The real estate investor must compare the anticipated return for an investment with the associated risk. The return includes: Appreciation (or depreciation) in ...
Right to an item belongs to the public at large so anyone can use it. An example is a real estate software program that is publicly available by an electronic bulletin board service. ...
Rights, interest, and benefits inherent in the ownership of real estate, as distinguished from personal property ...
Apartment building in which each resident owns a percentage share of the corporation that owns the building. ...
A narrow passageway between buildings providing secondary rear access. ...
Stiff pipe used to cover electrical wiring for safety purposes. ...
Fan with an opening to the outside air that lets stale or hot air exit the structure; usually used in a kitchen when cooking or in a bathroom that does not have a window. It is used for ...
If buyers are considering a home with an assumable mortgage at a fair interest rate or if the sellers have already paid their mortgage, remember to consider seller financing. With seller ...
Have a question or comment?
We're here to help.