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Real Estate Glossary

Real Estate Glossary
Use this real estate glossary to research terms you might run across in a real estate transaction.

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Allowance for vacancy and income loss	An allowance used on pro-forma or profit-and-loss projections for income properties. You subtract an allowance for vacancy from gross income to decide net effective income (income before expenses). An investor cannot use rental property that is 100\% occupied. Depending on the market area, the vacancy allowance for income properties such as apartments is usually from 5\% to 10\% of the gross rental.

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