Commercial property usually must be zoned for business purposes. It is possible to invest in commercial property directly, or through Real Estate Investment Trusts or Real Estate Limited Partnership.
Investors receive income from rents and capital appreciation is the property is sold at a profit.
Commercial Underwriting Guidelines Commercial Financing is underwritten on a case by case basis. A key component in making an underwriting evaluation is the debt coverage ratio. The DCR is defined as the monthly debt compared to the net monthly income of the investment property in question. Typically they will determine the DCR ratio based on monthly figures, the monthly mortgage payment compared to the monthly net income. The higher the DCR ratio the more conservative the lender.