Occupancy rate is the ratio of rented units compared to total units in a building. Ten units with nine renters equals a 90% occupancy rate.
An office building is a structure used primarily for business-related activities not related to retail sales, for example, administration, clerical services, consulting, and other client services.
Operating expenses are the costs a business incurs as a result of its normal operations.
Opportunistic Investment Strategy
Opportunistic investment strategy is an aggressive strategy that involves investing in properties in need of significant rehabilitation before they are able to earn market rental rates.
Ordinary income is taxed at ordinary income tax rates. Ordinary income doesn't qualify for the capital gains tax treatment. Salaries, interest payments, and dividends are examples of ordinary income.
Origination fees are costs passed to a borrower to cover the expenses of issuing a loan. Generally, origination fees include the cost of obtaining a credit report, an appraisal, and title insurance.