KEY TAKEAWAYS

• An income property is purchased or developed to earn income by renting or leasing it out to others or through price appreciation.
• Income properties may be both commercial and residential
• Owners should have financial cushion to pay for repairs, maintenance, and other costs such as property taxes in case of emergency
• Although they may generate income, owner should consider the risk including interest rates, housing market conditions, and disruptive tenants.

90% of the world’s millionaires have attributed their wealth to real estate investing and yet homeownership rates have gradually declined to all-time lows.