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Question regarding net worth - when you have investment properties do you subtract the amount owed on them when calculating net worth? (example; a $1m in investment properties, with $400K in equity; $600K debt).(Go Bills!)
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The accountant's definition of net worth is what you own (asset) less what you owe (debt). So equity = net worth. If you refinance to pull cash out (which we do frequently), you reduce the equity in the property but you convert it to cash. So, at least in theory, there is no change in net worth.