If your entire real estate strategy is based on rental yield… aren’t you just buying a bond with maintenance problems?

Most people I talk to in real estate focus on one thing:

“How much rent does it generate today?”

But if this were a company, that wouldn’t be enough.

Companies are often valued using something like:

EBITDA × Multiple

So I started thinking about real estate the same way.

Rent ≈ EBITDA

Location / growth / demand ≈ Multiple

Two identical properties can generate the same rent…

But one is in a developing area with infrastructure coming, rising demand, better liquidity.

The other is in a stagnant area.

Same “EBITDA”

Different “multiple”

Which means… completely different future value.

So here’s the real question:

Are you buying properties for the income they produce today…

or for the multiple expansion they might get tomorrow?

Curious how you approach this.