Model A Refinance Using the Real Estate Financial Planner Software To model a refinance: Make a copy of the Scenario Make a copy of the “Already Owned” Property. Edit the copy to change the interest rate and loan balance and payment. Add the “refinanced” version of the property to the new, copied Scenario replacing the one that was not refinanced. If you’re modeling a “cash out refinance” add the amount of cash you received to your bank account. Rerun the Scenario and compare the two using the Charts.
In Episode 5, Andrea asks herself a common question: should I pay off my properties early with extra cash flow? Plus these related questions: Will paying off properties early lead to achieving financial independence earlier? Will it increase or decrease my net worth? Will that increase or decrease my risk? Will it give me a higher or lower standard of living in retirement? Let’s find out in this variation and how it compares to her baseline Scenario. Podcast Episodes The following are the podcast episodes for variations of Andrea’s story.
In Episode 4, Andrea confronts some of her biggest Fears about property management. She simultaneously has the fear of not being a good property manager herself (because she doesn’t know what she doesn’t know about property management having not done any studying of it) and she also has the fear of turning over control to a property manager and paying the property management fees. The question she is looking to get answered in this Scenario is: what does it look like if I hire a property manager and pay them 10% of gross rents? In this variation we will compare … Read more
In Episode 3, Andrea asks herself: is all this extra work of buying properties, moving every year, renting/managing rental properties worth the extra effort? Are her fears of managing properties worth the effort to overcome? What if Andrea just invested the same $100K from the divorce in stocks at 8% instead? That’s what we’ll look at in this variation from Andrea’s baseline plan in Episode 1. Podcast Episodes The following are the podcast episodes for variations of Andrea’s story.
Episode 2 is a variation from Andrea’s baseline plan. The only difference is that in this episode, Andrea is able to get $100 more per month in rent on her rental properties. You can think of this in one of several ways. Either, she has been under-renting the properties in her baseline Episode 1 (and other episodes for Andrea) by $100 per month and the new rent is really what fair market rent should have been. Or, she decided to really improve her ability to manage and market her rental properties to get the very top end of the rent … Read more
Andrea is a 40 year old recently divorced accountant to a small manufacturing company. She walked away from the divorce with her share of the proceeds of the sale of the family home and some money from the shared retirement money (not in any type of special account). Her share was $100,000. She has two young sons, age 2 and 4. She has no debt. Her primary Fear and focus is to provide enough for her kids. She also has a lesser fear of not saving enough money for retirement. She is also a little anxious about staging her comeback … Read more
Andrea is a Character in the Real Estate Financial Planner™ podcast. 40 years old Has her accounting degree from Arizona State University Works in accounting for a small manufacturing business – she’s a planner Earns about $4,000 per month Divorced, single mom with 2 small boys (age 2 and 4) Has $100K saved up including some of the joint proceeds from the sale of a previous home Money is going to be tight supporting her and two kids on just her salary so not a lot to save Wants to be able to provide for her family, save for retirement … Read more
The following are variations to the baseline Scenarios of Characters in the Real Estate Financial Planner™ podcast. Baseline Scenarios – The baseline scenario sets the story for what the Character in the podcast is planning to do. It gives you all the background on the Character, their situation and their original plan. Here are some baselines: Variations are just that—variations to the baseline plan. By comparing the original baseline Scenario to a variation, they help answer questions like: Should I sell my rental property? Should I refinance my rental? Should I do a rate and term refinance or cash out … Read more
The following are Characters in the Real Estate Financial Planner™ podcast. Andrea – 40-year old, recently divorced with 2 young kids, accountant. Earns $48,000 per year. Decides to Nomad™ while focusing on raising her kids. Bobby – AKA “Bad Luck” Bobby.