What if I bought a rental property?
A rental property adds an asset, usually a mortgage, a rent that may not arrive every month, and costs that continue whether or not it is let. Whether it improves the plan or simply enlarges it depends on the numbers you assume and on the reserve left after completion.
What shapes the purchase
- The purchase price, acquisition costs, deposit and the mortgage terms behind it.
- The rent you assume, and the vacancy you are honest enough to assume with it.
- Ongoing costs you model — management, repairs, insurance and building or service fees.
- The accessible reserve left once the deposit and the purchase costs have been paid.
- The value path you assign the property, and whether and when you plan to sell.
Keep the money on one side only
The baseline stays as it is, without the property. In the copy, the deposit and purchase costs have to leave the investing path: money used for a deposit cannot also be compounding somewhere else, and counting it twice is the most common way this comparison flatters the purchase.
Run both over the same horizon and read the monthly cashflow, not only the equity. A property can build value steadily while the rent, after the mortgage, management and repairs you entered, contributes less each month than expected — or nothing at all in a month without a tenant.
Questions worth testing
- What is the net monthly cashflow after the mortgage and every cost you entered?
- How many months of vacancy can the plan absorb before it becomes a problem?
- How much accessible money is left the month after completion?
- What does the plan look like if the value you assigned the property never moves?
How to read the result
Rent, vacancy, costs and the property’s value are assumptions you enter. Worthifi does not value property, does not estimate rents or yields and does not forecast prices. It applies no taxation of rental income and works only with the costs you added. This is a planning illustration, not property, investment or tax advice.
How it works in the app
The same acquisition flow as buying a home, but with a monthly rent set. Passive cashflow picks up the property's net rental cashflow — honestly, including if it's negative — while equity builds through the mortgage.
- Tap “Buy a property”.
- Set the purchase price and mortgage terms, and a monthly rent above 0.
- Check the property's net rental cashflow and its contribution to passive cashflow.
Model this yourself