I like to update my balance sheet each month, and wanted to get some feedback regarding appreciation calculation. It's not an exact science, but it's fun to keep track of appreciation on the properties (SFR's) I have. I use 3% annual, or .25% monthly, to keep track of growth. This is based off of the last appraisals I have from the properties. Does anyone do it differently, or have a suggestion? The balance sheet is great to see things in black and white, and keeps me motivated.
Thanks for any feedback.
I would not recommend doing this approach indefinitely, u need to true it up on annual basis, for this u can look at sales of similar properties on Zillow and also compare to the zestimate and then do a true up.
I don’t update my balance sheet for appreciation monthly, only annually.