PRINCIPAL REDUCTION
When we rent out our properties our tenants pay our loan (that is our mortgage principal payments). That means that at the end of the first year the original $100k mortgage loan is now worth only $98,222.00. That means you made $1,778.00.
When we rent out our properties our tenants pay our loan (that is our mortgage principal payments). That means that at the end of the first year the original $100k mortgage loan is now worth only $98,222.00. That means you made $1,778.00.
