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
Upon satisfaction of a mortgage or other debt payments, the deed releases property, or a portion of it, form the incumbrance. Often it is used in circumstances where a deed of trust is ...
Neighborhood square somewhat resembling a park. It is often owned by town or row house owners situated near the square. ...
One who represents a zone such an elected leader of a region. He or she have dealings with the county's officials in matters affecting that zone. ...
Products, services, markets, and even humans are often subject to swift and unpredictable changes that go against all previous expectations. In other words, they’re volatile. What is ...
Measure of the typical U.S. family's ability to buy a home, published by the National Association of Realtors. When the Index measures 100, a family earning the median income has exactly ...
The escrow fee is basically how the escrow agent or manager get his/her compensation for assisting and handling both the parties and the funds involved in escrow. In real estate, the ...
Map showing the kinds of soil in a designated locality. ...
Increase in the amount of money available for businesses and people to by real estate because of lower interest rates. Easy money stimulates spending on investment such as houses. See also ...
Net return rate earned on an equity investment in real estate after deducing any interest costs and taxes. ...
Have a question or comment?
We're here to help.