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Investments glossary

Income Approach


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Quotes of the day:

All that glitters is not gold, and things that look warm are often cold!

— Yassine Aumerally

The income approach, sometimes referred to as the income capitalization approach, is a type of real estate appraisal method that allows investors to estimate the value of a property based on the income the property generates. It’s used by taking the net operating income (NOI) of the rent collected and dividing it by the capitalization rate.

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