An approach to value which is typically used for any investment property of two- to four-family units is referred to as an income approach.
What is a basic investment?
A basic investment can be defined as a group of fundamental assets that are required to set up a business firm, so as to generate revenue (income) or gain profits.
In Business management, some example of assets which forms the building block of a basic investment include the following:
In Real estate management, an income approach is a type of approach to value which is typically used for any investment property of two-family units to four-family units because it also requires the basic investments.
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