Gross Potential Rent
Gross Potential Rent is the total income that a real estate investor expects to collect from the purchased property based on the current rent. To determine this, you calculate the total rent as if all units were occupied and the tenants make payments for rent. This is just a way of determining the possible rental revenue of the investment property and the rental value of any vacant unit. When an investor makes the decision to purchase a property, they pay what we consider a flat purchase price. Using this, investors can better predict the profitability of that investment property.