Which of the following is a way rental income contributes to an investor’s profit?

Rental income is a significant component of an investor's profit, as it is the primary source of revenue generated from investment properties. One of the key aspects of rental income is that it can contribute to covering operating expenses associated with the property, such as maintenance, repairs, property management fees, and utilities.

When tenants pay rent, a portion of that income can be allocated to ensure that the property remains financially sustainable. This means that even if rental income does not completely cover all expenses—since some unexpected costs might arise—the fact that it can assist in meeting these costs is valuable to the overall financial health of the investment.

The potential for rental income to offset operating expenses underscores the importance of properly managing properties and selecting suitable tenants to maintain steady cash flow. This aspect helps in building equity and attaining a positive cash flow scenario over time, thus enhancing the profitability of the real estate investment.