Real estate investments that meet the following two criteria help you grow your equity in the property without you contributing anything to the equity.
- You rent the investment property
- You take a mortgage to buy the property
We will explain this using an example that compares ownership of a primary home versus owning a rental real estate.
Property in which you live – your primary residence
Consider you buy your primary home in which you live for $100,000. To buy the property you make a down payment of $20,000 and take a mortgage for the remaining $80,000. Below are additional details of the purchase. Read the complete article on Prospektr.ai website.
