The phrase denotes real estate acquired with the intent of generating revenue, situated within a geographically proximate location to the individual or entity undertaking the acquisition. This can encompass residential dwellings rented to tenants, commercial buildings leased to businesses, or land held for future development, all chosen for their income-producing potential and convenient accessibility.
Proximity offers several advantages. It facilitates direct management and oversight of the asset, reduces travel costs associated with maintenance and tenant relations, and allows for a more informed understanding of local market dynamics. Historically, concentrating investments within a manageable radius has been a strategy employed to mitigate risk through localized knowledge and control.
