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Updated over 2 years ago on . Most recent reply

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Alex Salmeron
  • Investor
  • Boston, MA
2
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Understanding how to calculate equity on a potential investment

Alex Salmeron
  • Investor
  • Boston, MA
Posted

Can anyone point me to any resources on equity and how to calculate it/how much you'll potentially have in X amount of time? I'm looking at a house in CT that doesn't look like a good play in terms of rent income but I'm wondering if there might be a good equity play lurking somewhere in there.

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Taylor L.
  • Rental Property Investor
  • RVA
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Taylor L.
  • Rental Property Investor
  • RVA
Replied

Sounds like you're really referring to appreciation? There are generally two ways real estate investors think about appreciation, market appreciation and forced appreciation. Market appreciation is pretty much entirely out of your control, and is driven by (as the name implies) broader market forces. Forced appreciation refers to your business plan and how it can impact the value of the property. 

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