The Real Estate Financial Planner Blueprint™
27 Buy 10 All Cash Rental Properties as a Renter
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
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
Achieved Financial Independence Goal
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
Final Month Summary
Introduction
Before we get deep into the details of the Blueprint™, I want to do three things: thank you, congratulate you, and give you some background.
First, thank you for reading this Blueprint™ and demonstrating that you're committed to studying and evaluating your investment strategy.
"Success is stumbling from failure to failure with no loss of enthusiasm."
— Winston Churchill
Second, congratulations... you've taken an important step toward better understanding how investing works. Before I lost almost everything in the Great Recession, before my personal bankruptcy, before the rental Property foreclosures... I thought I knew it all. I had acquired a multi-million dollar real estate portfolio and my ego suggested I knew everything. I wish I could go back in time and slap that arrogant young man. I now realize that while I know a lot, I still gain new knowledge daily and I do not know everything. Far from it.
Using The Real Estate Financial Planner™ software that generates this Blueprint™ helps me learn and helps you learn. It teaches us where strategies are strong—and probably more importantly—where they are weak. It gives us unparalleled insight into how a portfolio of
Properties performs together, as a group. It allows us to run countless what-if
Scenarios to see what would happen if this and this and this happened not just to one
Property, but to my entire portfolio including my real estate and other investments like stocks, mutual funds and bonds.
I want to congratulate you because you are being smarter than I was by seeking out this information, studying, planning and learning before doing. I wish I had.
I won't pretend to know all the answers, but hopefully together, with the help of The Real Estate Financial Planner™ software and this Blueprint™ we can both become better investors and better stewards of our money.
And third and finally, a little background: I believe many of you would like to know some of the methodology behind how we do the modeling to create these Blueprints™. With that in mind, here is a big picture overview of how we model investment strategies and how you can edit our assumptions if you'd like to see how that changes the results.
Scenarios
Using The Real Estate Financial Planner™ software we can combine Accounts,
Properties and
Rules together to form a
Scenario.
Accounts
Accounts are places where you store or invest money. In some
Scenarios you might have an
Account that represents your stock market brokerage
Account. You may also have an
Account representing your IRA or 401K. Or, another
Account that you use to save up for down payments to purchase additional
Properties.
Properties
Properties are real estate you own. They can be single family homes, duplexes, triplexes, fourplexes, or even apartment buildings. They can be commercial, industrial or residential
Properties. They can be
Properties you live in,
Properties you rent or special
Properties you live in for a period of time and then convert to rentals later (what we call the Nomad™ investing strategy).
Properties can be a specific
Property with a specific address or it can be a Dynamic
Property that represents a type that you might buy more than one of over time.
Rules
Rules allow us to manipulate both
Accounts and
Properties.
For example, we might have a Rule that deposits a certain amount of money into our
Account each month like a paycheck. A
Rule could also withdraw expenses each month from an
Account.
Rules might also allow you to buy a Dynamic
Property each time that your
Account has saved enough for a down payment.
Rules can be used to change what return you are earning on
Accounts. You might use this to model the erratic returns of the stock market. Similarly, you can use
Rules to vary how quickly or slowly
Property values are going up or down (appreciation) or how quickly or slowly rents are going up or down (rent appreciation).
Blueprints™
When we provide a super-detailed narrative explaining a Scenario we call that a
Blueprint™.
Blueprints™ are narrated explanations of
Scenarios we created that go over a specific strategy with specific assumptions.
With each Blueprint™ we walk you through the purchase of each
Property.
We explain how each Rule impacts each
Account and
Property.
Plus, we summarize how they all combine to affect your personal net worth, cash flow and much more.
Blueprints™ are like detailed, step-by-step plans for you to evaluate how a specific investment strategy works based on the assumptions entered for that unique combination of
Accounts,
Properties and
Rules for that
Scenario.
Significant Events
When we are narrating what happens in a specific Scenario within a
Blueprint™ we use the idea of
Significant Events to document important things that happen in the
Scenario.
A Significant Event might be buying a new
Property or renting a
Property. It might be selling a
Property.
We use Significant Events to know where to pause and show you what is happening with your
Accounts and
Properties.
Editing
Scenarios
Sometimes you will be reading through a Blueprint™ and you will think to yourself, I wonder how changing this one thing impacts how everything else turns outs. You have the ability to edit
Scenarios with The Real Estate Financial Planner™ software: you can change the variables that make up
Accounts,
Properties and
Rules.
In fact, you can choose to modify an existing Scenario or start over with a new
Scenario from scratch to model your specific situation.
![](https://realestatefinancialplanner.com/wp-content/uploads/scenario.png)
The
Blueprint™
[27] Buy 10 All Cash Rental Properties as a Renter is summarized as a narrative
Blueprint™ below.
This is the same as the Baseline Scenario:
https://refp.io/159797
Except...
- They remain a renter themselves (do not buy an owner-occupant property)
- Save up and buy up to 10 rental properties all cash (without a mortgage)
Accounts,
Properties and
Rules for this
Scenario
First, I will walk you through each of the Accounts,
Properties and
Rules that make up this
Scenario. Then, after you learn what the component parts are for this
Scenario, I will take you through each
Significant Event for the entire
Scenario.
This Scenario is made up of the following
Accounts,
Properties and
Rules.
![](https://realestatefinancialplanner.com/wp-content/uploads/scenario.png)
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
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
Achieved Financial Independence Goal
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
Final Month Summary
Reports