There is usually a small amount left over as monthly profit for the owner (positive cash flow), but the greater investment payoff comes from the tax shields afforded to the owner through the use of leverage or gearing. The resulting property is then sold after a period of equity-building, usually five years – the typical commercial mortgage term.
There is typically a minimal amount left as monthly profit for the owner (positive cash flow), but the larger financial gain comes from the tax benefits provided to the owner via leverage or gearing. The acquired property is then sold after an equity-building period, usually five years – which aligns with typical commercial mortgage terms.