Final answer:
Potential gross income is the annual income that an investment property could make with no vacancies or collection losses.
Step-by-step explanation:
The correct answer is Potential gross income.
Potential gross income is the annual income that an investment property could make with no vacancies or collection losses. It represents the maximum income that the property has the potential to earn.
For example, if you own an investment property that has a total of 10 units and each unit rents for $1,000 per month, the potential gross income would be $10,000 per month or $120,000 per year.