The Real Estate Financial Planner Blueprint™
02 Nomad™ Earn 10% Less Income from Job
Summary At The End of Month 804
Let's summarize what your position looks like at the end of Month 804 (our last
Properties Owned
The chart below shows the total number of Properties that you own up to and including this month, Month 804.
Net Worth
At the end of Month 804, 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 804 is $920,514.82.
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 804. Our total Account balance this month is $675,048.09 This is after all the income and expenses for the month.
The following chart shows how the total Account balance of $675,048.09 for all your Accounts is distributed over your 2 Accounts in Month 804.
Total Equity
The total equity you have in your Properties exceeds $100,000 in Month 804. You have $245,466.73 in total equity as shown in the chart below.
Paychecks
The following chart shows how much gross you're bringing home from paychecks based on any Rules that are for paychecks in the Scenario.
Paychecks Adjusted For Inflation
While it may look like your gross paycheck is increasing rapidly over the last 10 years, if we adjust for inflation, you see a very different picture. The chart below shows us the gross monthly paycheck after we adjust it back to today's dollars and remove inflation.
Once we take into account the taxes you're paying on your gross paychecks, you're left over with your net from paychecks. That is shown in the chart below. For this month, it is $72,859.27.
Not counting the cost of the Property you are living in and not collecting rent on, you have $73,726.64 in personal expenses.
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 804, you will need to be earning, at a minimum, $84,216.51 per month gross (before taxes) between you and your spouse.
Your income from your rental Properties can count toward this as well.
Purchased Typical Stamford, Connecticut Nomad™ Property 2 Property
Bought in Month 946
We have a Rule that has you buying the Typical Stamford, Connecticut Nomad™ Property 2 Property even if your Account balance in the All-In-One Account Earning 7%/year Account has zero dollars. The following is a chart showing the balance of All-In-One Account Earning 7%/year Account from the start of the Scenario to Month 946 after we've adjusted for all the income and expenses for the entire month.
To purchase the Typical Stamford, Connecticut Nomad™ Property 2 Property, we're assuming you're getting a 5% down payment loan. With a $6,637,730.38 purchase price that means you need to have $331,886.52 for down payment.
The total cost to close must also include the rent ready costs ($0) and closing costs ($66,377.30) minus any seller concessions ($0).
Description | Amount |
---|---|
Down Payment | $331,886.52 |
Rent Ready Costs | $0 |
Closing Costs | $66,377.30 |
Seller Concessions | $0 |
Total Cost To Close: | $398,263.82 |
Since this is a Nomad™ Property, you are buying it, moving in and living there for at least a year before renting it.
You are moving into this property, so you are not collecting any rent on this property yet.
Return in Dollars + Reserves
Property | Appreciation | Cash Flow | Debt Paydown | Cash Flow from Deprec.™ | +12 Mos Reserves @ 8% | RID+R12™ Total |
---|---|---|---|---|---|---|
$199,623 | $32,796 | $106,407 | $28,935 | $40,331 | $408,091 | |
$199,583 | $0 | $64,432 | $0 | $48,130 | $312,145 | |
Totals: | $399,206 | $32,796 | $170,839 | $28,935 | $88,462 | $720,236 |
* Denotes a property that had no rent for at least part of the period covered. |
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 $13,000 and a Ideal Target Monthly Income in Retirement™ of $19,000 at the time of achieving your
Blueprint™ Menu of Sections
- Introduction
- Accounts
- Properties
- Rules
- Significant Events
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Paid Off Mortgage
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Final Month Summary
Reports