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Carlisle Mitchell

Insider Tips for Real Estate Investors

By Carlisle Mitchell | Real Estate Pro in Houston, TX

Appraisals - Income Approach

The income approach is a real estate appraisal method that allows investors to estimate the value of the property based on the income produced. The income approach is computed by taking the net operating income of the rent collected and dividing it by the capitalization rate (the investor's rate of return).

The income approach is one of three popular approaches to appraising real estate. The others are the cost approach and the sales comparison approach. 

 
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