Definition of "Income stream"

Cash earnings generated from a real estate investment or property. Cash earnings equals cash revenue less cash expense. The cash earnings may or may not be discounted to its present value by using a present value of $1 table depending on the user's needs and perspective. An example is a prospective buyer of an apartment house or office building who estimates the cash earnings to be generated by considering cash rentals to be received and cash expenses associated with the rental property. In so doing, the prospective owner can estimate what price to pay for the property.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Person providing advice for compensation about real estate. ...

Rights, interest, and benefits inherent in the ownership of real estate, as distinguished from personal property ...

Process determining an individual's financial ability to meet the terms of a loan. When selling real estate, the sales broker must qualify the buyer to make certain he/ she has the ...

Individuals who are legally entitled to inherit money and property when someone dies. ...

Term given to two depreciation systems defined by the Internal Revenue Service: The main system is called the General Depreciation System (GDS). Under GDS, most property is assigned to ...

Within Real Estate, “nuisance” is a term used to describe any disturbance that might affect neighboring houses. Nuisance abatement is the enforcing of policies and codes that ...

A cost of funds index that most adjustable rate mortgages written in California in recent years are tied to. Computed by the Federal Home Loan Bank of San Francisco, it reflects the cost ...

Sale that is finalized only in the case of a particular occurrence or eventuality. ...

CE Shop has become a widely used and popular term in real estate. But what does it mean? “CE” stands for continuing education, and in the real estate business, it implies a ...

Popular Real Estate Questions