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.