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

Summary At The End of Month 72

Let's summarize what your position looks like at the end of Month 72 (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 72.

Net Worth

At the end of Month 72, 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 72 is $664,723.53.

Rent and Cash Flow

By the end of Month 72 the total monthly rent you are now collecting from all the Properties for this Scenario is $21,615.29 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 72. Our total Account balance this month is $31,942.68 This is after all the income and expenses for the month.

The following chart shows how the total Account balance of $31,942.68 for all your Accounts is distributed over your 2 Accounts in Month 72.

Total Equity

We can't quite say you have a full million dollars in equity at this point in Month 72, but you do have $632,780.86 in total equity.

The chart below shows your total equity to this point.

Cash Flow

Your total cash flow for all Properties combined (excluding any Properties you are currently living in and not collecting rent on) is $4,023.70 per month in Month 72. 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 72, you will need to be earning, at a minimum, $1,239.15 per month gross (before taxes) between you and your spouse.

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

Significant Event Month 73

Significant Event Description: Sold Property After Owning It For 36 Months

The following is a chart showing the balance of All-In-One Checking Account Account from the start of the Scenario to Month 73 after we've adjusted for all the income and expenses including this sale for the entire month.

The following shows the Monthly Rent of this Property through the sale in Month 73. Monthly Rent typically drops to zero the month that we sell because we assume the sale happened on the first of the month and therefore you collected no rent.

Interested top see how the rent on this property changed over the period you owned it? The following shows the historical Rent Appreciation Rate of this Property through the sale in Month 73.

The following shows the historical Private Mortgage Insurance Monthly Premium paid for this Property through the sale in Month 73.

Private Mortgage Insurance Monthly Premium typically goes away (to zero) after the loan-to-value balanced on this Property drops below 80%.

The following shows the historical Cash Flow of this Property through the sale. This is your gross depreciation times your Effective Tax Rate to give you an estimate of the cash flow you'd receive from tax benefits by owning this rental property.

The following shows the historical Cash Flow From Depreciation™ of this Property through the sale. This is your gross depreciation times your Effective Tax Rate to give you an estimate of the cash flow you'd receive from tax benefits by owning this rental property.

Since the sale happens on the first of the month and Monthly Rents have dropped to zero, but you still have a mortgage payment due, your True Cash Flow™ on this Property is typically negative the month you sell it.

Remember, you pay your mortgage in arrears and that's why you have a final mortgage payment due in the month that you sell the property even though you sell on the first of the month.

The following shows the True Cash Flow™ of this Property through the sale in Month 73.

The following shows the Property Value of this Property through the sale. The software typically shows the Property Value for a Property that sells in that month drop to zero.

The following shows the Appreciation Rate of this Property through the sale. This is an annualized number and really the property value is only going up by approximately 1/12th of this amount each month. Technically, it is a little less than 1/12th because it compounds.

The following shows the Appreciation (in dollars) of this Property through the sale. This is basically the Property Value times the Appreciation Rate for that period to show how much the Property went up or down in value that month.

The following shows the historical Cash on Cash Return On Investment of this Property through the sale in Month 73. Cash on Cash Return on Investment does not take into account Cash Flow from Depreciation™ like True Cash Flow™ does.

The following shows the historical True Cash on Cash Return On Investment of this Property through the sale in Month 73.

The following shows the historical Return On Equity of this Property through the sale in Month 73.

The following shows the historical True Cash Flow™ (Cash Flow + Cash Flow from Depreciation™ + Capital Expenses) of this Property through the sale in Month 73.

The following shows the historical Mortgage Interest Rate of this Property through the sale in Month 73.

The following shows the historical Mortgage Balance of this Property through the sale in Month 73.

The following shows the historical Equity of this Property through the sale in Month 73. This Equity does not take into account sales costs, transaction costs, depreciation recapture, or capital gains.

The following shows the historical Cash Out Refinance Equity of this Property through the sale in Month 73. This Cash Out Refi Equity does not take into account refinance costs but does limit you to being able to refinance any more than 75% loan-to-value.

The following shows the historical Sell With Agent Equity of this Property through the sale in Month 73. This Sell With Agent Equity assumes that you'll net 93% of the sale price (to account for sales costs and transaction costs). It does not account for depreciation recapture (if any) or capital gains (if any).

The following shows the historical Depreciation of this Property through the sale in Month 73.

The following shows the historical Cumulative Negative Cash Flow of this Property through the sale in Month 73.

The following shows the historical Cumulative Cash Flow of this Property through the sale in Month 73. It shows how much total cash flow this Property has produced since you've owned it all summed together.

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™.