# v. Revenue, Expenses & Cash Flow Revenue, expenses, and cash flow describe how real estate assets generate income, incur costs, and produce operating results. These fundamentals form the economic foundation for valuation, financing, and investment decision-making across the real estate lifecycle. #### **Additional Income** Revenue generated from non-rent sources such as parking, storage, amenities, or service fees. #### **Cash Flow** The net amount of money generated by a property after all operating expenses and debt service are paid. #### **Effective Gross Income (EGI)** Gross potential income adjusted for vacancy, credit loss, and concessions. #### **Expense Ratio** The proportion of operating expenses relative to gross income, used to assess cost efficiency. #### **Fixed Expenses** Costs that do not fluctuate significantly with occupancy, such as property taxes and insurance. #### **Gross Operating Income** Total income generated by a property before operating expenses are deducted. #### **Gross Potential Income (GPI)** The maximum possible income a property could generate if fully leased at market rates. #### **Net Operating Income (NOI)** Income remaining after operating expenses are deducted from effective gross income, before debt service and taxes. #### **Operating Expenses** Recurring costs required to operate and maintain a property, excluding debt service and capital expenditures. #### **Operating Margin** The percentage of revenue remaining after operating expenses are paid. #### **Other Income** Supplemental revenue streams beyond base rent, often categorized separately for reporting purposes. #### **Rent Roll** A detailed record of tenants, lease terms, rental rates, and income generated by a property. #### **Revenue Stability** The predictability and consistency of income over time, influenced by lease terms and tenant quality. #### **Variable Expenses** Costs that fluctuate based on occupancy or usage, such as utilities and repairs. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://info.building.inc/lexicon/real-estate-fundamentals/v.-revenue-expenses-and-cash-flow.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.