These days, Income properties are very attractive between investors and buyers. That is why we would like to explain Investment or Income Property Definition. An investment property is a real estate property that you will buy with the purpose of an income. You can have an income for it:
- through rental income
- the future resale of the property
- or both ways.
In addition, An investment property can be a long-term endeavor or a short-term investment. Investors sometimes conduct studies to determine the best, and most profitable, use of a property. This refers to the property’s highest and best use. For example, if an investment property is zoned for both commercial and residential use, the investor weighs the pros and cons of both until they ascertain which has the highest potential rate of return.
Types of Investment Properties:
Residential: Rental homes are a popular way for investors to supplement their income. An investor who purchases a residential property and rents it out to tenants can collect monthly rents.
Commercial: Income-generating properties don’t always have to be residential. Some investors purchase commercial properties that are for business purposes. Additionally, the leases for these properties often command higher rents.
Mixed-Use: this property is for both commercial and residential purposes. For instance, a building may have a retail storefront on the main floor, but it has an apartment on the second floor.
This post is a simple explanation of Investment or Income Property Definition. If you need our help to sell/buy real estate, please reply!
BABAK MEHRABI, Real Estate Salesperson