Income property is property bought or developed to earn income through renting, leasing or price appreciation. Income property can be residential or commercial. Residential income property is commonly referred to as “non-owner occupied”. A mortgage for a “non-owner occupied” property may carry a higher interest rate than an “owner occupied” mortgage as it is viewed by lenders as a higher risk. We must understand that what people are buying is the income (at least in the most basic sense).
Net operating income (NOI) is a calculation used to analyze real estate investments that generate income.Net operating income equals all revenue from the property minus all reasonably necessary operating expenses.
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