Total Value from Investment

[Anthony Franco]

Hello BP Forum,

I'm new to real estate investing (read tons on the topic but haven't jumped in just yet). I had a general question that I'm hoping someone could clarify.

I've noticed people mention, for example, that they purchase a property for $100,000 and it cashflows $200/month. That's after accounting for vacancies, repairs, property management, etc.

However, wouldn't there be additional benefits than just the $200/month? For example, increased equity in the property from paying down the mortgage. As well as tax benefits such that could lower your overall personal tax bill, etc.

So in the end, your overall benefit from owning the property would be even more than just the $200/month cashflow, correct? Or am I misunderstanding something? Because I'd like to determine the total benefit from owning a property before investing. So this is something I've been wondering.

Thank you,

Anthony