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Investment DictionaryGross Potential Income
The theoretical ceiling - every unit occupied, every rent at market, every dollar collected. Real underwriting starts here and subtracts.
Gross potential income (GPI) is the maximum revenue a property could produce: all units occupied at market rent, no vacancy, no concessions, no unpaid rent.
annual_GPI = sum(units x market_rent) x 12
A 4-unit building at $1,000 per unit per month has a $48,000 annual GPI. A mixed building with two one-bedrooms at $1,300 and two two-bedrooms at $1,700 has $72,000.
Ceiling, not forecast
GPI uses market rent, not what current tenants pay, which makes it useful two ways: as the top line every realistic projection subtracts from (vacancy and credit loss come next, giving effective rental income), and as a measure of upside when in-place rents lag the market. Just remember that closing that gap is an execution plan, not an entitlement.
Where you'll see it in Rescover
The APOD table on every analysis starts at gross potential income and walks down, line by visible line, to net cash flow.
Amortization (Loan Paydown)
Every mortgage payment quietly buys back a piece of your property. That's equity you didn't have to write a check for.
APOD (Annual Property Operating Data)
The one-page financial statement of a rental - income at the top, cash flow at the bottom, every deduction visible in between.
Cap Rate
Net operating income divided by price. The speed of the return, before financing.
See it with your own numbers.
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