In real estate finance, net income refers to the amount of income remaining from a property after operating expenses are deducted from adjusted gross income. It represents the property’s earnings before accounting for debt service, income taxes, or capital expenditures.
Net income is a key measure used by investors, lenders, and appraisers to evaluate the financial performance of an income producing property. It forms the basis for many valuation methods and helps determine a property’s ability to support financing and generate returns.
