Lender · Albermarle, NC · Member since 2025 · 237 posts · 90 votes
I’ve seen many investors unlock growth simply by reassessing older properties for refinance opportunities instead of selling. Curious how often property owners here evaluate equity positions as part of their long-term management strategy.
When I get my monthly statement from my PM I input all that data into Excel spreadsheets.
From there there's running calculations for income, expenses (categorized by type), then I have net income (after subtracting out the mortgage cost)
Then I calculate ROI
At the end of the year I look at the value of the house and calculate the equity. I also look at the loan paydown. I look at the net proceeds if I sell. Then calculate the ROE (I just use net income/equity). I don't calculate anything pro forma or appreciation or tax benefits.
A refinance opportunity would likely look like low ROE I'm thinking
I honestly track my net worth frequently (yearly at the least) and all my expenses (personal and business) so my RE is included in that calculation.