Income property is real estate you own for the express purpose of deriving income. In other words, your house is not income property, but the second house you rent out is income property. While everybody seems to think that owning a bunch of income property is a great idea, in practice it gets a little more complicated. Income property must be maintained which can be costly, and if no renters can be located then income property rapidly becomes outgo property because the mortgage payment must still be made. Income property is sometimes described with the fancy phrase "non-owner occupied".