The Real Estate Financial Planner Blueprint™
SS 019 Investing $100,000 in 20% DP Rentals and Stocks at Approx 8.97%/yr

Summary At The End of Month 84

Let's summarize what your position looks like at the end of Month 84 (our last  Significant Event). We will look at number of Properties owned, net worth, cash flow and several other important, key metrics.

Properties Owned

The chart below shows the total number of Properties that you own up to and including this month, Month 84.

Net Worth

At the end of Month 84, your overall net worth for the entire Scenario up to this point in time can be summarized by the following chart.

As you can see in the net worth summary above, your net worth for Month 84 is $265,626.73.

Account Balances

If we sum up the Account balances for all the Accounts each month we can see the total balance for each month up through this month, Month 84. Our total Account balance this month is $15,035.86 This is after all the income and expenses for the month.

The following chart shows how the total Account balance of $15,035.86 for all your Accounts is distributed over your 2 Accounts in Month 84.

Total Equity

Remember, total equity is the difference between what your Properties are worth and what you currently owe on them.

The following chart shows you the Property values of all your Properties in Month 84.

And, the following shows how much you owe on each Property.

When you consider both the Property value and the mortgage balance on each property, the difference between the two is what we call your total equity. In Month 84, you have an equity with each Property as shown below.

And the following chart sums the equity of each Property to show you the total equity of $250,590.87.

Cash Flow

Your total cash flow for all Properties combined (excluding any Properties you are currently living in and not collecting rent on) is $1,874.67 per month in Month 84. This does include an estimate of cash flow from the tax benefit of depreciation. You can see a summary chart of this below.

Minimum Gross Income Required

The Real Estate Financial Planner™ software does calculations to determine what it believes you would need to be earning in gross income from all sources between you and your spouse (if you're buying together on the loan) to be able to qualify for the loans on Properties.

The software assumes you have no other debt besides your mortgages. If you have car debt, student loan debt, credit card debt or any other debts at all, it will increase this number. While it is not 100% accurate, a rule of thumb to estimate how much more you'll need to earn if you have additional debts is to double the monthly payment. For example, if your car payment is $300 per month, you'd need to add about $600 more per month in income to still be able to qualify carrying that additional debt.

Of course, this calculation is really an estimate and you should discuss the actual requirement with your lender for your specific situation.

The following chart shows you the estimated minimum gross monthly income required to be able to qualify for the current loans you have in the Scenario. For Month 84, you will need to be earning, at a minimum, $0 per month gross (before taxes) between you and your spouse.

Your income from your rental Properties can count toward this as well.

Purchased 4/2 SFH - 20% DP 3 Property
Bought in Month 163

We have a Rule that has you buying the 4/2 SFH - 20% DP 3 Property when your Account balance in the $100,000 Invested in VTSMX at 8.97%/year Account reaches $10,000 (which we adjust for inflation to be worth $14,903.99 in Month 163). The following is a chart showing the balance of $100,000 Invested in VTSMX at 8.97%/year Account from the start of the Scenario to Month 163 after we've adjusted for all the income and expenses for the entire month.

To purchase the 4/2 SFH - 20% DP 3 Property, we're assuming you're getting a 20% down payment loan. With a $447,119.68 purchase price that means you need to have $89,423.94 for down payment.

The total cost to close must also include the rent ready costs ($0) and closing costs ($4,471.20) minus any seller concessions ($0).

Description Amount
Down Payment $89,423.94
Rent Ready Costs $0
Closing Costs $4,471.20
Seller Concessions $0
Total Cost To Close: $93,895.13

The monthly rent on this Property is $2,767.75 per month.

Return in Dollars + Reserves

Property Appreciation Cash Flow Debt Paydown Cash Flow from Deprec.™ +12 Mos Reserves @ 8% RID+R12™ Total
4/2 SFH - 20% DP 1 $19,076 $8,229 $7,186 $1,391 $2,146 $38,027
4/2 SFH - 20% DP 2 $14,269 $3,659 $6,183 $1,707 $2,488 $28,306
4/2 SFH - 20% DP 3 $12,877 $2,570 $6,150 $2,074 $2,410 $26,082
Totals: $46,222 $14,458 $19,520 $5,172 $7,044 $92,416

Asset Allocation

How are assets allocated? Let's first look at this month.

And how have they looked over time up to this month?

Phases of Financial Independence™

With a Minimum Target Monthly Income in Retirement™ of $5,000 and a Ideal Target Monthly Income in Retirement™ of $20,000 at the time of achieving your  Goal of financial independence, let's look at the Phases of Financial Independence™.

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