Copy Scenario
Copy this new Scenario to your Real Estate Financial Planner™ software:
29 Milwaukee, Wisconsin Nomad™ Starting with $0
This is the same as the Baseline Scenario:
https://refp.io/160103
Except...
- Starting with $0 in the account
- Requires 6 months reserves of personal expenses to buy a property
- Requires 6 months reserves for the property they're buying to be able to buy another property
- Requires 6 months reserves of all owned properties to be able to buy another property
The Scenario you want to copy into your Real Estate Financial Planner™ software has the following:
- 2
Accounts (including
)Default Cash Account
- 1
Properties
- 2
Rules
Please register for a Forever Free Account or Login to your existing Real Estate Financial Planner™ software to copy this Scenario into your account.
Once it is in your account, you can view detailed Charts for dozens of variables and edit any of the assumptions for
Accounts,
Properties, and
Rules to run your own what-if
Scenarios.
You can change things like:
- Adjust how much money you start with in any
Account
- Model variable stock, bond and real estate rates of returns
- Change how many
Properties you buy and when you buy them
- Set your own personalized target monhtly income in retirement to indicate when you reach financial independence
- Model receiving social security payments when you reach a certain age
- See what happens if there is a market crash or correction for your stocks, bonds and/or your real estate
- Tweak price and rent appreciation rates for individual
Properties or all your
Properties
- Find out what happens if you pay off your mortgages early... with cash flow each month or only when you have enough to pay off the
Property in full
- Use equity in
you own to cash-out refinance and buy moreProperties
or invest it elsewhereProperties
- Model buying more
Properties than you need then selling off any extras to pay off the remaining
Properties to achieve your own user-defined financial independence number
- Evaluate your own safe withdrawal rate and see how it impacts your investment plan
- And much, much more...
Scenario
- Modeled for 1200 months (100 years)
- 20% effective income tax rate
- 3% inflation rate
- 6.5% mortgage interest rate
- 4% yearly safe withdrawal rate (SWR)
- $5,000 minimum target monthly income in retirement (MTMIR) in today's dollars
- $8,000 ideal target monthly income in retirement (ITMIR) in today's dollars
Accounts
Summary of assumptions for the Account in this
Scenario.
- Account Name:
All-In-One Account Earning 7%/year, Start with $0
- $0 starting account balance
- 7% yearly rate of return (at start)
- Asset Type: Stocks
Properties
Summary of assumptions for the Property in this scenario (at the start of the
Scenario).
Property Address/Description: Milwaukee, Wisconsin Nomad™ Property - $0 Start
- Milwaukee, WI
- This
is a Dynamic resuable template of a property that we can buy multiple copies of usingProperty
.Rules
- This
is a Nomad™ property that you live in until you buy your next owner-occupant property. When you buy your next Nomad™ property, this one becomes a rental.Property
- This
uses dynamicProperty
to determine when we buy/sell it in theRules
.Scenario
- Account for down payment, income and expenses for this
:Property
All-In-One Account Earning 7%/year, Start with $0
- $159,379 property value and purchase price and it goes up at a rate of 3% per year.
- 5% of purchase price for down payment.
- 1% of purchase price in closing costs at time of purchase.
- No seller concessions.
- 6.5% is the mortgage interest rate with a term of 360 month mortgage term.
- Private Mortgage Insurance (PMI) at a rate of 0.85% of the initial loan balance until the loan-to-value drops below 80%.
- $1,779.75 per month in rent but rent increases at a rate of 3% per year.
- 3% of the monthly income is the assumed vacancy rate.
- 10% of the monthly income is the assumed maintenance rate.
- 2.764% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $159,379 that's about $4,405.24 per year in property taxes at the start and it changes as the property value changes.
- 0.521% of the value of the property each year is the assumed property insurance rate. Based on the initial value of $159,379 that's about $830.36 per year in insurance costs at the start and it changes as the property value changes.
- This is a residential property and 15% of purchase price is considered the value of the land (when doing our depreciation calculation).
Return in Dollars Quadrant™
The following is the estimated Return in Dollars Quadrant™ for this property based on its original assumptions for the first year.
Return On Investment Quadrant™
The following are the estimated Return on Investment Quadrant™ for this property for year 1. We take the returns for each component and divide by the "Total Cost to Close" (down payment, rent ready costs, closing costs - seller concessions). This first one ignores reserves.
How to Calculate
See the steps walking you through how to calculate various metrics for this property.
Walkthrough how to calculate...
- Gross Potential Profit
- Gross Operating Income
- Operating Expenses
- Net Operating Income
- Cap Rate
- Cash Flow
Rules
These are the Rules included with this
Scenario.
Buy
Property When
Account Has Down Payment - Buying 10 Milwaukee, Wisconsin Properties
- This
runs for the entireRule
.Scenario
- This
will buy another copy of the Dynamic (template property)Rule
Milwaukee, Wisconsin Nomad™ Property - $0 Start whenever
All-In-One Account Earning 7%/year, Start with $0 has enough for down payment and closing costs...
- Plus at least 6 months of reserves for the property we're buying
- Plus at least 6 months of reserves for all personal expenses
- Plus at least 6 months of reserves for all other
ownedProperties
- This
requires that with the purchase of the property with thisRule
that Debt-To-Income ratio remains below 45%.Rule
- This
will only buy 10Rule
maximum. But if you sell any, it will try to buy more to replace them.Properties
Paycheck and Personal Expenses - Paycheck From Job and Personal Expenses Saving $1,000 Per Month
- This
runs for the entireRule
.Scenario
- Depositing both your paycheck and pulling expenses out of the same
All-In-One Account Earning 7%/year, Start with $0.
- Both paycheck and personal expenses will be Inflation Adjusted.
- Gross paycheck is $5,000 Inflation Adjusted.
- Assuming a tax rate of 20% on your paycheck.
- Net paycheck (after taxes) is $4,000 Inflation Adjusted per month.
- The paycheck will stop when they reach "Financial Independence" (goal of Minimum Target Monthly Income in Retirement achieved).
- Personal expenses are $3,000 Inflation Adjusted per month.
Significant Events
These are the Significant Events
Scenario.
- Month 36
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 48
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 60
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 72
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 84
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 96
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 108
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 120
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 132
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 144
Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Month 183
Achieved Financial Independence Goal
- Month 279
Achieved Ideal Financial Independence Goal
- Month 396
Paid Off Mortgage
- Month 408
Paid Off Mortgage
- Month 420
Paid Off Mortgage
- Month 432
Paid Off Mortgage
- Month 440
Achieved 2 X Ideal Financial Independence Goal
- Month 444
Paid Off Mortgage
- Month 456
Paid Off Mortgage
- Month 468
Paid Off Mortgage
- Month 480
Paid Off Mortgage
- Month 492
Paid Off Mortgage
- Month 504
Paid Off Mortgage