After subtracting vacancy and collection losses from potential gross income, you are left with?

When you subtract vacancy and collection losses from potential gross income, you arrive at effective gross income. This figure represents the actual income that a property is expected to generate after accounting for these losses.

Effective gross income takes into consideration the fact that not all potential income will actually be collected due to factors like tenant vacancies or defaults on rent payments. It provides a more realistic view of the income that can be expected from the property, allowing property owners and investors to assess their financial position more accurately.

Other concepts, such as net operating income, cash flow, and fixed operating expenses, come into play later in the financial analysis. Net operating income is calculated after deducting operating expenses from effective gross income, while cash flow is what remains after subtracting debt service and other financing expenses from net operating income. Fixed operating expenses refer to costs that don't change regardless of occupancy, such as property taxes and insurance—they are part of the operating expenses deducted after arriving at effective gross income.

Thus, the correct approach to understanding the financial metrics associated with real estate income flows leads directly to identifying effective gross income after adjusting for losses.