What is a mortgage payment calculation, and why would investors of the passive income variety need to concern themselves with such a process? Isn’t the whole idea of investing in a passive income portfolio to have someone else pay down your mortgage (in the form of rent) so that you may capitalize on the backend?
In short; yes, but that doesn’t mean you won’t have some work to do up front, and the mortgage payment calculation is no exception. Passive income investors, or at least those that want to secure their future accordingly, will need to have a strong grasp of the mortgage payment calculation process if they are to ever find a viable deal.
Investors covet few things more so than the often sought after passive income stream. After all, what’s better than a source of income that’s, well, just that: passive? But I digress; passive income, while a great wealth building vehicle, isn’t entirely passive.
WHY THE MORTGAGE PAYMENT CALCULATION IS SO IMPORTANT
While the name may imply it, passive income isn’t exactly passive until you put in the leg work up front. It’s true; a great passive income portfolio can produce years of returns with virtually no work on your behalf, but you must first get it to a point in which you may remove yourself from the equation. Only once you have a sound foundation can you realize the true potential of a properly developed passive income portfolio. In order to get to that point, however, there are several things you must address, not the lest of which is analyzing a deal in the first place.
Determining whether or not a property is a viable option to compliment your passive income strategy is a skill in and of itself. And like a skill, it must be honed. As an investor, it’s in your best interest to learn how to analyze deals efficiently and accurately. In fact, you could argue that the best investors aren’t the ones that deal in the largest volume, but rather the ones with the foresight to see a great property for what it really is: a chance to increase your bottom line.
