The income approach is an appraisal method that is used to help provide an opinion of the value of real estate. The income approach is used on cash generating (income producing) real estate properties such as: shopping centers, strip malls, motels, apartments, offices, warehouses, nursing homes, etc. The present worth of the income from an income-producing property is calculated by measuring the amount, quality, and durability of the future net income stream the property can be expected to return to an investor.
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