Who's Paying Your Mortgage? As a homeowner, you obviously pay for your mortgage but as an investor, your investor, your tenant does. Equity build-up is a significant benefit of mortgaged rental property. As the investor, collects rent and pays expenses, the principal amount of the loan is reduced which increases the equity in the property. Over time, the tenant pays for the property to the benefit of the investor. Equity build-up occurs with normal amortization as the loan is paid down. It can be accelerated by making additional contributions to the principal each month along with the normal payment. … (1 comments)
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