The Real Estate Financial Planner Blueprint™
Sam Sells His Way To Financial Independence

Summary At The End of Month 38

Let's summarize what your position looks like at the end of Month 38 (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 38.

Net Worth

At the end of Month 38, 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 38 is $307,993.32.

Rent and Cash Flow

By the end of Month 38 the total monthly rent you are now collecting from all the Properties for this Scenario is $20,403.25 per month. The following chart shows the total monthly cash flow from all the Properties up to this month.

And, if you'd like to see how each individual Property is contributing to the total monthly rent, the following chart shows each of the 12 Properties owned up through this month. Properties without rent (like the one you're living in) are obviously excluded.

Here is how much each of the Properties you are collecting rent on is contributing in net cash flow after expenses (but not including cash flow from depreciation).

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 38. Our total Account balance this month is $28,330.33 This is after all the income and expenses for the month.

The following chart shows how the total Account balance of $28,330.33 for all your Accounts is distributed over your 2 Accounts in Month 38.

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 38.

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 38, 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 $279,662.99.

Cash Flow

Your total cash flow for all Properties combined (excluding any Properties you are currently living in and not collecting rent on) is $3,903.78 per month in Month 38. This does include an estimate of cash flow from the tax benefit of depreciation. You can see a summary chart of this 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.

Your total gross paycheck in Month 38 is $2,657.40.

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 $2,657.40.

Not counting the cost of the Property you are living in and not collecting rent on, you have $2,657.40 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 38, you will need to be earning, at a minimum, $4,121.76 per month gross (before taxes) between you and your spouse.

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

Purchased Subject-To Property 14 Property
Bought in Month 39

We have a Rule that has you buying the Subject-To Property 14 Property even if your Account balance in the All-In-One Checking Account Account has zero dollars. The following is a chart showing the balance of All-In-One Checking Account Account from the start of the Scenario to Month 39 after we've adjusted for all the income and expenses for the entire month.

To purchase the Subject-To Property 14 Property, we're assuming you're getting a 10% down payment loan. With a $257,747.45 purchase price that means you need to have $25,774.75 for down payment.

The total cost to close must also include the rent ready costs ($0) and closing costs ($515.49) minus any seller concessions ($0).

Description Amount
Down Payment $25,774.75
Rent Ready Costs $0
Closing Costs $515.49
Seller Concessions $0
Total Cost To Close: $26,290.24

The monthly rent on this Property is $1,689.53 per month.

Return in Dollars + Reserves

Property Appreciation Cash Flow Debt Paydown Cash Flow from Deprec.™ +12 Mos Reserves @ 8% RID+R12™ Total
Subject-To Property 2* $2,438 -$559 $1,660 $312 $457 $4,309
Subject-To Property 3* $1,982 -$770 $2,059 $417 $572 $4,261
Subject-To Property 4 $5,304 $2,477 $4,761 $1,281 $1,430 $15,253
Subject-To Property 5 $3,954 $2,102 $4,944 $1,286 $1,482 $13,768
Subject-To Property 6 $5,561 $1,324 $4,864 $1,289 $1,463 $14,501
Subject-To Property 7 $6,770 $924 $4,915 $1,295 $1,490 $15,394
Subject-To Property 8 $5,004 $1,806 $4,838 $1,310 $1,483 $14,441
Subject-To Property 9 $5,588 $401 $4,933 $1,316 $1,509 $13,748
Subject-To Property 10 $4,871 $655 $4,918 $1,323 $1,510 $13,277
Subject-To Property 11 $5,051 $904 $4,930 $1,322 $1,517 $13,723
Subject-To Property 12 $7,673 $1,029 $4,773 $1,327 $1,480 $16,282
Subject-To Property 13 $5,865 $1,429 $4,652 $1,330 $1,453 $14,728
Subject-To Property 14 $8,276 $3,354 $4,075 $1,335 $1,310 $18,350
Subject-To Property 15 $7,346 $1,961 $4,076 $1,230 $1,290 $15,904
Subject-To Property 16 $2,985 $1,771 $3,307 $1,009 $1,051 $10,123
Subject-To Property 17 $4,651 $2,433 $2,650 $898 $862 $11,494
Totals: $83,321 $21,240 $66,357 $18,281 $20,359 $209,558
* 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 $2,500 and a Ideal Target Monthly Income in Retirement™ of $6,000 at the time of achieving your  Goal of financial independence, let's look at the Phases of Financial Independence™.

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