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Annual Capital Gain
Max LTV for Cash-Out Refi
Standard Equity & Wealth Equity & Wealth

True Net Equity™

Equity remaining after accounting for the cost to access it through refinancing.

Example Result

Sample Data
$55,422

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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True Net Equity™ Formula

Current Equity - Cost to Access Equity
Current Equity $91,679
- Cost to Access Equity —
= True Net Equity™ $55,422

What This Means

A sample property priced at $385,000 with $2,850/month rent has a true net equity™ of $55,422 at Purchase (Month 0). Many investors overvalue their equity position by ignoring the cost to actually use it. True Net Equity™ gives you the realistic, usable equity figure. If your property has $100,000 in equity but it costs $8,000 to access it, your True Net Equity™ is $92,000. This is the number that matters for strategic decisions like refinancing or selling.

Where This Value Comes From

True Net Equity™ is not entered directly — it is calculated from Total Equity Current, Cost to Access Equity, Appreciation Rate, Depreciation Recapture Tax Rate, Capital Gains Tax Rate, Real Estate Commission, and Closing Costs at Sale. See the formula breakdown above and the detailed inputs below.

Inputs That Determine True Net Equity™

Platform Distribution

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Why It Matters

Many investors overvalue their equity position by ignoring the cost to actually use it. True Net Equity™ gives you the realistic, usable equity figure. If your property has $100,000 in equity but it costs $8,000 to access it, your True Net Equity™ is $92,000. This is the number that matters for strategic decisions like refinancing or selling.

Detailed Explanation

True Net Equity™ subtracts the estimated cost of accessing your equity (through a cash-out refinance) from your current equity position. Paper equity is only valuable if you can access it, and accessing it has real costs — closing costs, origination fees, and potentially higher rates.

Example

Sample Result
$92,000

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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