I'm learning about real estate investing, but I have a constant question in my mind. What's the point of buying a house that if everything goes right you'll reach the breakeven point in let's say 4 years (considering rent fees income)? From what I understood and seems to me more reasonable is that by increasing the monthly rent fee that tenants has to pay, the value of the property increases proportionally, so than if we sell the property we'll earn good money. Talking numbers: I buy a 1 million dollars house. Let's say there are already tenants that pays 1000 euros a month. I increase the rent fee of 30%, now the property worths 30% more of when I bought it so 1.3 millions. If I sell the property I will have earned 300k. Is it right? I find the analogy with buying companies. If I buy a company that is worth a million dollars, because it earns 100k a month and then I manage to increase the earnings to 200k a month, then the company will be worth 2 million dollars and if I sell it I will have earned 1 million dollars. Is it right?
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source https://www.reddit.com/r/RealEstate/comments/y8tsro/whats_the_point/
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