Daily Real Estate Vocab #11 - Income Approach

Daily Real Estate Vocab is here! Today we discuss the term: Income Approach The Income Approach is: A real estate appraisal method that determines how much a property generates through income for it’s owner, including that income, and/or potential for income. So what does that mean? Well, I think this is the best way to explain the income approach is through using an example. Let's say you are a real estate investor and you are looking to buy a strip plaza. During the appraisal process you’ll obviously want to determine how much income your tenants are generating. Why? Well for numerous reasons, but in our instance specifically, determining how much income something generates is a large factor in determining something's value. For more vocab terms check out our ultimate guide here: https://realestatelicensewizard.com/real-estate-terms/ #realestate #realestateexam #realestatevocab -=-=-=-=- Don’t forget to like and subscribe for more!