Should I Refinance My Rental Property?

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.

Ep 5: Andrea Pays Off Properties Early with Cash Flow

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.

Ep 4: Andrea Hires Professional Property Manager

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

Ep 3: Andrea Invests in Stocks Instead of Nomading™

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.

Ep 2: Andrea Gets $100 Per Month More In Rent

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

Ep 1: Andrea Buys 8 Rentals with Down Payments for 2

 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

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

Variations

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

Fears

The following are  Fears held by the  Characters in the Real Estate Financial Planner™ podcast.

Characters

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.