income property

Property bought or developed to earn income through renting, leasing or price appreciation. Income property can be residential or commercial. Residential income property is commonly referred to as "non-owner occupied". A mortgage for a "non-owner occupied" property may carry a higher interest rate than an "owner occupied" mortgage as it is viewed by lenders as a higher risk.

Investopedia Says:
A common practice during periods of home price appreciation is for investors and speculators to purchase residential income properties with the intent that rents will cover their monthly expenses for a period of time until the property can be sold for a large capital gain. As with all markets during times of fast price appreciation, and as with all market bubbles, those that enter the market first and get out first usually do well. Those that enter the market later, and get out last usually don’t do as well.

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Real estate bought for the income it produces. The property may be placed in an Income Limited Partnership , or it may be owned by individuals or corporations. Buyers also hope to achieve capital gains when they sell the property.

Real estate bought for the income it produces. The property may be placed in a Limited Partnership, or it may be owned by one individual or company. Buyers also hope to achieve long-term capital gains when they sell the property.

Real estate that generates rental income.
Examples: The following are types of income property:

• apartment buildings

• shopping centers

• office buildings

• industrial properties and warehouses

• resort and recreational properties

• hotels, motels, and restaurants

The following are generally not considered income property:

• personal residences

• undeveloped land (rental income is minimal)

• schools, churches, parks