Do you include the equity in your rental properties as part of your net worth? If so, what do you use to get the best estimate of the FMV of your properties? The estimates I see online can vary widely depending on the site if used so was curious if there is a good source others have used.

like
Posting as :
works at
You are currently posting as works at

Easiest approach is to just value it at purchase price. Avoids fluctuations (and time wasted trying to arbitrarily value it) and your NW still goes up gradually as you pay down the loan.

I'm not a RE investor yet but this is what I do with my house. I used to have it tied to Zillow but it jumped around so much it just made my NW snapshot less useful.

like

I do a modified version of this; I typically mark it to a conservative market estimate every other year.

I list all my rentals and RE syndications and alternative assets at cost. It understates my NW but also gives me a nice pop here and there when something sells. Original point was to see how my actions (ongoing investments and debt paydown) were impacting my NW without the noise of RE market fluctuations. Now I keep it up because it’s just easier. Oh side note - it gives me historical records for cost basis to do it that way. When I make major improvements I add it to the cost/value on my NW spreadsheet.

like

Thank you

If you include the equity you'd need to include the debt as a liability

like

OP is trying to do that, yes, and understands. I was responding to A1 who appears to me to be confusing assets vs. equity.

like

To be honest, I’ve never put that much stock in the current/future value of the home. It’s never certain. I include equity in personal calculations because I like to see how the loan paydown affects my NW, but I take the value of the property with a grain of salt. That said, I check the Zestimate from time to time, knowing they’re probably not accurate - just to see the movement up & down to get a sense for the market movements. In my calculator I just keep what I paid for the house - any property appreciation on top of that is a bonus.

like

Gotcha, I was thinking about this as well. This def seems to be the most conservative approach.

I can’t imagine why I wouldn’t include a major asset in my net worth.

There’s any number of ways to value a property. Treating it like a residential property wouldn’t be a bad start, so you could just use Zillow or local comps.

I imagine for a rental property, you could also do some kind of cash flow-based valuation, which you would be well-positioned to do yourself since you know your rental income and cost of capital.

like

Both the asset and tied liability are part of your NW. Zillow, CMA from a trusted realtor or appraisal are good valuation options. Or like where one of my properties are located, you can simply 10x the annual gross revenue to loosely get a value of the property.

like

Just use the more conservative of zestimate, Redfin estimate, and your loan servicer’s estimate (my servicer keeps being like “you can refinance now and access X amount in equity!” And give an appraisal).

I figure that’s more or less safe. Just remember you’d take about a 5% haircut upon selling.

Yes that’s why it’s “net”

What I bought at

If you use Personal Capital, they have a built in plug in / option to be able to use the Zestimate. Lmk if you want a referral code, and we both get a gift card

That being said, currently, I have the PP as a hard coded asset (vs. Zestimate) in Personal Capital, and I added the loan as liability. My decision was because the PP reflects cash in the deal, and I didn’t want to reflect unrealized equity in such an all or nothing asset in my NW, but recently I’ve been considering changing to using the Zestimate

Loopnet.com. Tons of apartment/commercial listings. Youll see overinflated values but youll see what roi people are claiming which yields the price based on income. Isnt that where you found your properties? Or are you a single family home person?

Related Posts

Can anyone please help with google referral?

like

Any updates on Accenture Nagpur center?Accenture

Does Citi Citi India provide laptop for wfh?

like

What are favorite questions an interviewee had for you post interview?

like

DI : 19.5
Pwc India : 17.5
Ey India : 18

Sr Associate in Advisory Consulting
All fixed, which is better, perks, bonus, hike and wlb.

Thanks in advance

like

Does your company enforce in contract not to move to another consulting firm?
If i wana quit my current company i an not allowed to go into another one.
Option would be to be unemployed for 1/4 months before joining. Anyone had another way of doing it?

like

Guys, be honest, how often do you use your job as a way to pick up chicks?

like

Of the SHREK firms, which is the best executive search firm and why?

likefunny

I'm genuinely sorry to hear abt the layoffs at AirBnB and my heart goes out to your coworkers who are affected. How can a company approach restructuring in a way that is ethical?

likeuplifting

Hi all,

I'm looking for job change currently in RPA Blue Prism Profile. Can anyone refer me in PwC?

Thanks in advance.

like

Hi Fishes,

My colleague's younger sister is looking for a job as a fresher. She has recently graduated (B.com) and is pursuing US CMA. She's also done a couple of internships and is highly proactive and motivated. The family has been struggling to meet the ends specially due to Covid Pandemic.

Tried applying via Naukri and LinkedIn but there's hardly any response.
Can someone please refer her in their organization for a relevant role for a B.Com graduate. DM me for more details.

TIA

like

Have a job offer for an accounting manager position. Fully remote, but working 50-60 hours a week. Base salary is 115k and on top of that get stock options. Is that a base salary? Located in FL

like

Hi , I'm working in Zensar Technologies as jr.software engineer as fresher but want to switch/join a product based company now I'm not asking fore referrals or something but I'm asking for a guidence as there are so many courses to learn dsa. Someone might say learn it for free and i agree but i need something to learn in structured ways please can someone help me to just figure out the course

like

Hello folks!
Wondering what is the ideal package for a 5+ years exp with AI and Deep learning skillset?

like

Sink boy 😌

Post Photo
likeuplifting

Hey Guys,

I got an offer from Delloite USI and I am currently looking for other small consulting firms as well due to a personal choice. But the issue I am facing is that they are not selecting me even after clearing all the rounds since I already have an offer with Deloitte. They are afraid that I won't join them leaving Deloitte offer.

How could I convince them that I will join them for sure?

like

I have an OL from Global automation. Want to know more about salary structure and company@global automation india pvt ltd

like

Hi Friends, I have 9.5 YOE in QA automation. And have been offered L7 with 35LPA. I have counter offer for 35LPA but hr is not ready to increase more than 35LPA for L7. What is maximum range for L7 level?

like

Curious to know has anyone stumbled upon a bar(cocktails, drinks) that has also nailed social accounts so good so that besides their bar offerings people also cant wait to consume their content?

like

Additional Posts in FIRE Financial Independence Retire Early

Anxiety attack. Age 40. Only $200k in retirement accounts. Rest is in taxable...

Live in HCOL city with 2 kids. Have been rentvesting in smaller lower cost cities and getting good yield, moderate growth. Property is ridiculously priced in my city, can’t get anything for under $1.8-2.2mil and don’t have much of a deposit. but rents are going up too. Does it make sense to continue rentvesting? We will have to stay in this city for kids education for next 12 years….

like

I started on my FIRE path in my 20s. Got into buying houses and renting them out. Got over leveraged, and lost everything in the housing crash. From a net worth of $0 in 2010 finally got to $4M this year!

likeupliftingsmart

Should I continue to contribute to 401k roth or should I move to conventional? I contribute the max. My employer contributes 7.5% as conventional. I’m 38 and in the 24% tax bracket.

like

I have about £100k sitting in my savings account, most of it I likely will not need in the next 5 years or even 10. Any advice on where I should put it to generate some additional income?

like

Experiences selling investment property to companies like offerpad / sundae / orchard vs. Selling via for sale by owner vs. Working with an agent? Has a sellier's agent been able to get a better price? Which are the online buying companies and whoch one offers better prices? Thank you.

like

I’m doing it. 42. Mess of kids. 2.4M in retirement funds and a paid off car and house. 🍀 😳

likeupliftingfunny

After 7 years of actively managing my portfolio I have concluded that simple boring index funds are way to go. I did well in tech stocks but have some I'll times entries and exits which kinda took down profits. Do you still believe actively trading would produce better results. I have learned quite a lot in process but now I don't think I would be able to give same time when life gets busy with higher roles, kids etc. Anyone have been successful in managing their portfolios and beating indexes.

like

What’s FATFire in Manhattan in your late 30s/early 40s?

like

Can you start this if you’re 34? Kind of late to the game or nah?

like

What are some of the best ways you have paid off student debt? I have 180k and I want to aggressively lay it off. For context, I am one year into my career and have spent these months getting rid of $20k of consumer debt. Want to be responsible and keep the momentum going.

like

Best app for financial budget tracking ? I’m in Canada if that makes a difference.

like

What's your side hustle?

like

I am 31. I have $750k in assets and 400 in liab. Net worth is 350. Largest assets (excluding real estate) are 120k in 401k, 40k in brokerage, 20k in crypto, 25k cash. Own property totaling $550k (2 condos) but debt of 350k so 200k of my net worth is in real estate. Student loans of 30k. Thread continued 👇🏽

like

So with sky rocking inflation, sinking stocks how are y’all adjusting your monthly budget. I’m seeing my grocery budget for a family of four just not getting stretched as far, where to trim?

like

At what age did you hit your first $1m? What was the main source that helped you achieve this faster than you might have otherwise? At my job, I would have to work into my late 40s to hit that magic number. Looking to change things.

like

Are there net worth checkpoints at which you should be adjusting your investment strategy (either motivated by taxes or returns)? If so, what are they and why? Not thinking for the super wealthy rather the average 🐟. Disregard the natural progression to less risky assets as you get closer to retirement. Just thinking more in line of "I now have $400k liquid, I should be doing x instead of y." Thanks

like

How many FIers from PwC?

Okay this is a slightly multifaceted/nuanced question but there are a lot of smart people here so I’m going to try!

Lately I’ve been looking at increasing my holdings of foreign dividend paying stocks, and planning to add to positions.

However, it irks me that when I hold these stocks directly, there is often a “foreign tax withholding” subtracted from the dividend payment. Recently, however, it came to my attention that IRS allow you to deduct/credit the foreign withholding … cont

like

Any side hustlers out there? How do get extra cash? I need some inspiration 💁🏽‍♂️

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal