What Is Investment Net Worth
Investment net worth is the value of your investment assets minus investment liabilities. It includes stocks, bonds, mutual funds, retirement accounts, and real estate held for income or appreciation. Liabilities tied to these assets, such as mortgage balances, are subtracted to determine net worth.
Does a Rental Property Count
Yes, the market value of a rental property is typically included in investment net worth. You can use the current fair market value or an appraised value. The outstanding mortgage balance or loan against the property is subtracted as a liability.
How to Value a Rental Property
Common methods include comparing recent sales of similar properties, using income capitalization based on rental income, or relying on a professional appraisal. Online valuation tools can provide estimates, but they may not reflect local market conditions accurately. For detailed guidance on valuation methods, see Investopedia: Valuation Methods.
