You can use plenty of calculators out there to see that $xx in the stock market today at y% interest will give you $zz at some determined point down the road. Pretty simple.
But how do I understand the same calculation for rental properties?
Lets say I have 3 houses in BCS worth an average of $200k each. From a cash flow standpoint, I will assume rent will go up to offset tax increase so net income will stay the same. But what can I estimate they are worth in 20-30 years when paid off?
1% average appreciation for 20 years would be $244k value. 2% would be $297k. 3% would be $361k.
So should I assume that each house will be worth between 244-361k in 20 years for a retirement value of between $732,000 and $1,083,000?
But how do I understand the same calculation for rental properties?
Lets say I have 3 houses in BCS worth an average of $200k each. From a cash flow standpoint, I will assume rent will go up to offset tax increase so net income will stay the same. But what can I estimate they are worth in 20-30 years when paid off?
1% average appreciation for 20 years would be $244k value. 2% would be $297k. 3% would be $361k.
So should I assume that each house will be worth between 244-361k in 20 years for a retirement value of between $732,000 and $1,083,000?