← Real Estate Investing
Equity, Appreciation, Break-Even & Wealth
How equity builds through paydown and appreciation, and when you break even.
Lessons
01
How Rental Properties Build Wealth
Rental properties build wealth through four mechanisms: cash flow, loan paydown, appreciation, and tax benefits. Understanding all four changes how you evaluate deals.
02
How Mortgage Paydown Builds Equity
Every mortgage payment reduces your loan balance. Over time, the tenant is buying the property for you. Learn how amortization works and why it accelerates.
Formulas
Property Equity
Property Equity = Property Value − Loan Balance