What type of analysis is conducted to project the net income produced after all expenses are deducted from an investment property?

The type of analysis conducted to project the net income produced after all expenses are deducted from an investment property is financial analysis. This method focuses on evaluating the cash flow of an investment, considering all operational expenses, taxes, and other costs associated with ownership. By assessing income against expenditures, financial analysis provides insight into the property's profitability and return on investment.

In the context of real estate, financial analysis is crucial for investors to determine the potential profitability of a property, ensuring informed decision-making when considering the purchase or management of investment properties. It involves creating projections based on expected rental income while systematically subtracting personal taxes, maintenance costs, property management fees, and other financial obligations associated with the property.

On the other hand, other types of analysis—such as environmental, market, and comparative analysis—serve different purposes. Environmental analysis evaluates the ecological and regulatory impacts on the property, market analysis examines supply and demand trends in the market, and comparative analysis benchmarks a property against similar properties to assess its value or market position. Each serves its unique role but does not specifically focus on the net income calculation like financial analysis does.