Real estate developed or bought for the purposes of generating income. Milwaukee Mortgage Broker specializes in helping investors determine if an investment is a viable one for their situation. Call us today at 414-303-1215 for an informative consultation.

In residential mortgage, if you want to purchase a fourplex and plan to live in one of those units, the transaction will be considered as a owner occupied property. This would yield lower interest rate compare to buying the property as an investment property.

The capitilazation rate is an important figure when determining whether to buy an income property. The higher the Capitilization rate, the more profitable the purchase should be.

Income property is property that is either bought to fix up and sell for a profit or property that is bought to rent out to a renter to generate income and grow equity through real estate. Real estate investing can be very prosperous however you need to make sure that you do your research and buy properties that will allow you to maximize your investment.

The capitalization rate of income property is basically the return on the sales price. Higher is best and is calculated by dividing the Net Operating Income or NOI by the sales price.

 

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