Income/Revenue Generating Real Estate
Purchasing an income generating property?
Commercial or residential, an income generating real estate is always an excellent source of passive cash flow. However, when purchasing, cash flow is not the only income that should be considered.
An income generating property has three sources of revenue which should be considered when purchasing.
Sources of Revenue:
Cash flow income
Whether a residential rental property or a commercial office space, they will all have the three sources of revenue. However, simply calculating revenue is not enough. Without a business plan, the risk is greater.
Drafting a business plan for every potential investment is time consuming, a quick SWOT analysis can be done at first.
Have a question in regards to purchasing an income property? Do not hesitate to "Ask Sudha".