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The income approach sometimes referred to as the income capitalization approach is a type of real estate appraisal method that allows investors to estimate the value of a property based on the.
What is the income approach formula. Investors use this calculation to value properties based on their profitability. This methodology approaches national income from allocation facet. The income approach is an evaluation methodology used for real estate estimated that is computed by dividing the capitalisation tariff or price by the net operating income of the rental payments.
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