# The Real Estate Financial Planner Blueprint™

Ep 23 Norm and Norma - $25K Fix and Flips Every 6 Months - Buy 20% Down Payment Rentals

## Properties

So, let's go over the different **Properties** that are included with this **Scenario**. Later, when we go through each **Significant Event**, we can go through more specific numbers about that event. For now, I'll share with you our basic assumptions for each of the **Properties**.

Of course, you can use **The Real Estate Financial Planner**™ software to modify any of these assumptions (or more than one) to see how that would impact the plan.

Let's jump into it.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Oct 2024 (Month 25) for $397,837.50

First, the Typical 20% Down-Payment Rental Property **Property** is a special type of **Property** we call Dynamic in **The Real Estate Financial Planner**™ software.

#### Dynamic Property

Dynamic **Properties** are based on a reusable template **Property** so we can buy multiple copies of it.

For example, let's say you wanted to model what it looks like to buy basically the least expensive new construction **Property** in your market every year for 10 years. Instead of having to create 10 different **Properties** in **The Real Estate Financial Planner**™ software, you could create one Dynamic **Property** and use **Rules** to buy one of them each year.

Dynamic **Properties** go up in value each year based on the appreciation rate you define just like **Properties** you own. So, the copy of the Dynamic **Property** you buy in year 10 is usually much more expensive than the copy of the Dynamic **Property** you buy in year 1 in our example. We also model rent appreciation. The rent you would collect would likely be higher if you used a positive rent appreciation rate.

With **The Real Estate Financial Planner**™ software you can use multiple Dynamic **Properties** with different characteristics to simulate changing real estate markets during your model. If you want to see what happens if you have a market downturn in a few years and how that impacts your **Scenario**, you could, for example, set up the Dynamic **Property** for your first 3 **Properties** to be different than the Dynamic **Property** that you use for your 4th through 10th purchases. Or, another way to model this would be with using **Rules** that change the appreciation rate, rent appreciation rate and dozens of other variables instead of using multiple Dynamic **Properties**. Either method of modeling works and which you decide to use is up to you. The **Real Estate Financial Planner**™ software is about giving you the tools to model as you see the world.

The opposite of Dynamic **Properties** is a specific **Property** you've purchased. In **The Real Estate Financial Planner**™ software, we would use this for **Properties** you have already purchased since you won't be buying that exact same **Property** again. Although, you could take a **Property** that you purchased in the past and say: I'm going to buy 10 properties exactly like this and make it a Dynamic **Property** to model buying them repeatedly.

Another way to think about the difference between Dynamic **Properties** and regular **Properties** is that you need to use **Rules** to purchase and sell a Dynamic **Property** because they don't use fixed dates for purchase and sale.

Back to the **Property** we are discussing for this **Scenario**: Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

In some real estate markets there are more buyers than sellers and sellers are fielding multiple offers on desirable **Properties**. We call this a seller's market.

In other markets, there are more sellers than buyers and sellers are competing to try to attract buyers to choose their **Property**. We call this a buyer's market.

The market conditions—and often just as importantly—the quality and attractiveness of the **Property** you're considering will determine whether you can make an offer to get a **Property** for less than the asking price and/or less than its current value or whether you might need to make an offer higher than asking price to overcome multiple offers from other buyers to get the **Property**.

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $397,837.50 and that it is worth $397,837.50. So, you're not getting the property at a discount at all and are paying full price.

If you find yourself in a market that is different than what we are modeling in this **Scenario**, you can use **The Real Estate Financial Planner**™ software to adjust our assumptions to model it more appropriately for what your market is and what you expect it to be in the future. Some folks will, and I believe justifiably so, model their personal plan for both a strong buyer's market in the future and then, change the assumptions to be for a strong seller's market. I believe you should know how your plan will perform in a variety of future market conditions to make sure you understand the pros and cons of a variety of what-if situations.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $79,567.50 as a down payment and that you'd be getting a loan for $318,270. The monthly payment on a $318,270 loan for 30 years at 6.625% would be $2,037.92 per month.

### Closing Costs

Getting loans and closing on **Properties** have costs associated with them. We group all of these costs together into a single number that we call closing costs. Closing costs might include your share of title insurance, loan origination fees, points, closing services fees, flood certifications, appraisals and inspection costs.

For this **Property** we have assumed that the closing costs run about 3% of the $397,837.50 purchase price. 3% of $397,837.50 is approximately $11,935.13.

### Seller Concessions

Sometimes we are able to negotiate with the seller to get them to contribute some money toward paying for our closing costs. When a seller contributes some money toward our closing costs we call these seller concessions.

The lender and, more often, the specific loan program you choose will regulate how much in seller concessions you can get and what it can be used for. In most cases, seller concessions can be used for things like buyer's closing costs, loan discount points, loan origination fees, prepaid items and any other fee, cost, charge, expense or expenditure. You cannot typically use seller concessions to pay for any of your down payment. You will need to come up with the entire $79,567.50 for down payment from your own funds.

In some areas if you don't use the seller concessions you've negotiated in your contact, any unused amounts revert to the seller. It is based on how the contract is written. This is the case in Colorado with the default wording of the Colorado Real Estate Commission approved *Contract to Buy and Sell Real Estate*. Just make sure you can use all the seller concessions you negotiate with your lender before writing and submitting your offer to the seller.

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

Sometimes when we buy a **Property**, it is not in rent-ready condition. Sometimes a **Property** will require you spend some money to prepare a **Property** to be able to be move-in ready. We call this expense rent ready costs.

While it can be difficult to achieve this, my preferred method of purchasing **Properties** is to buy **Properties** that have little or no rent ready costs. By minimizing your rent ready costs it reduces the amount of capital required to purchase the **Property** beyond the down payment and closing costs. Once we optimize our down payment and closing costs by choosing great team members, rent ready costs are one of the few additional variables that we have control over through **Property** selection to minimize our initial overall investment with acquiring **Properties**.

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

For **Properties** you are renting, you get tax benefits known as depreciation. Depreciation varies depending on whether you have a residential **Property** or commercial **Property**. Residential **Properties** are depreciated over 27.5 years while commercial **Properties** are depreciated over 39 years.

Since depreciation can reduce the amount you spend on taxes, and that means more money in your pocket, we can consider the after-tax impact of your depreciation as a form of spendable cash flow. As we buy more expensive **Properties** the cash flow from depreciation increases as well.

Since this **Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

For each **Property**, **The Real Estate Financial Planner**™ software allows us to select which **Account** we will use for down payment and expenses of purchasing the **Property**. Plus, we can select which **Account** we will use for depositing income from the **Property** like rent and subtract the expenses for the **Property** like the mortgage payment.

For this **Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

Appreciation is the tendency for **Property** values to go up over time. **Property** values can go up, go down or stay the same, but historically, over a long period of time, **Property** values tend to go up.

Want to learn more than you really ever wanted to know about appreciation? Great news! I taught a whole class on building wealth from appreciation on rental **Properties**; check it out below.

**Understanding Appreciation** Class Recording

https://RealEstateFinancialPlanner.com/understanding-appreciation-nomad-investor-club-edition/

**Cash Flow Versus Appreciation** Class Recording

https://RealEstateFinancialPlanner.com/cash-flow-versus-appreciation/

With **The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $2,758.34 per month.

Over time, rents tend to go up (just like **Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

We will explain the **Rules** in more detail in just a bit, however, I would like to show you which **Rules** do apply to the Typical 20% Down-Payment Rental Property **Property** and give you some very basic information about what each **Rule** does.

This **Rule** for this **Property** runs for the entire **Scenario**.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical 20% Down-Payment Rental Property **Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

We do limit the number of copies of the Typical 20% Down-Payment Rental Property **Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Apr 2026 (Month 43) for $415,873.79

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $415,873.79 and that it is worth $415,873.79. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $83,174.76 as a down payment and that you'd be getting a loan for $332,699.03. The monthly payment on a $332,699.03 loan for 30 years at 6.625% would be $2,130.31 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $415,873.79 purchase price. 3% of $415,873.79 is approximately $12,476.21.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

Since this **Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

For this **Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

With **The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $2,883.39 per month.

Over time, rents tend to go up (just like **Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

This **Rule** for this **Property** runs for the entire **Scenario**.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical 20% Down-Payment Rental Property **Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

We do limit the number of copies of the Typical 20% Down-Payment Rental Property **Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Feb 2028 (Month 65) for $439,032.29

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $439,032.29 and that it is worth $439,032.29. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $87,806.46 as a down payment and that you'd be getting a loan for $351,225.83. The monthly payment on a $351,225.83 loan for 30 years at 6.625% would be $2,248.94 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $439,032.29 purchase price. 3% of $439,032.29 is approximately $13,170.97.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

Since this **Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

For this **Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

With **The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $3,043.96 per month.

Over time, rents tend to go up (just like **Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

This **Rule** for this **Property** runs for the entire **Scenario**.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical 20% Down-Payment Rental Property **Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

We do limit the number of copies of the Typical 20% Down-Payment Rental Property **Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Aug 2029 (Month 83) for $458,936.19

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $458,936.19 and that it is worth $458,936.19. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $91,787.24 as a down payment and that you'd be getting a loan for $367,148.95. The monthly payment on a $367,148.95 loan for 30 years at 6.625% would be $2,350.89 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $458,936.19 purchase price. 3% of $458,936.19 is approximately $13,768.09.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

**Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

**Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

**Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

**The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $3,181.96 per month.

**Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

This **Rule** for this **Property** runs for the entire **Scenario**.

**Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

**Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Jan 2031 (Month 100) for $478,562.18

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $478,562.18 and that it is worth $478,562.18. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $95,712.44 as a down payment and that you'd be getting a loan for $382,849.74. The monthly payment on a $382,849.74 loan for 30 years at 6.625% would be $2,451.43 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $478,562.18 purchase price. 3% of $478,562.18 is approximately $14,356.87.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

**Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

**Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

**Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

**The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $3,318.03 per month.

**Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

This **Rule** for this **Property** runs for the entire **Scenario**.

**Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

**Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Apr 2032 (Month 115) for $496,575.06

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $496,575.06 and that it is worth $496,575.06. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $99,315.01 as a down payment and that you'd be getting a loan for $397,260.05. The monthly payment on a $397,260.05 loan for 30 years at 6.625% would be $2,543.70 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $496,575.06 purchase price. 3% of $496,575.06 is approximately $14,897.25.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

**Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

**Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

**Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

**The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $3,442.92 per month.

**Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

This **Rule** for this **Property** runs for the entire **Scenario**.

**Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

**Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Apr 2033 (Month 127) for $511,472.31

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $511,472.31 and that it is worth $511,472.31. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $102,294.46 as a down payment and that you'd be getting a loan for $409,177.85. The monthly payment on a $409,177.85 loan for 30 years at 6.625% would be $2,620.01 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $511,472.31 purchase price. 3% of $511,472.31 is approximately $15,344.17.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

**Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

**Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

**Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

**The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $3,546.21 per month.

**Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.

#### Buy Property When Account Has Down Payment

This **Rule** for this **Property** runs for the entire **Scenario**.

**Property** when the All-In-One Account **Account** has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the **Property**.

**Property** that we can buy using this **Rule** to 10 total.

## Typical 20% Down-Payment Rental Property **Property**

Purchased in Oct 2034 (Month 145) for $534,660.33

The Typical 20% Down-Payment Rental Property **Property** is a Dynamic **Property**.

### Purchase Price

For the Typical 20% Down-Payment Rental Property **Property**, we are assuming you are purchasing the **Property** for $534,660.33 and that it is worth $534,660.33. So, you're not getting the property at a discount at all and are paying full price.

### Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this **Property** at an interest rate of 6.625% with 20% down payment. That means you'd need to come up with $106,932.07 as a down payment and that you'd be getting a loan for $427,728.27. The monthly payment on a $427,728.27 loan for 30 years at 6.625% would be $2,738.79 per month.

### Closing Costs

For this **Property** we have assumed that the closing costs run about 3% of the $534,660.33 purchase price. 3% of $534,660.33 is approximately $16,039.81.

### Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this **Property**.

### Rent Ready Costs

**Property**, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

### Depreciation

**Property** is a residential **Property**, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

### **Accounts** for the Typical 20% Down-Payment Rental Property **Property**

**Property**, we are using the same **Account** for both the purchase and operating income and expenses: the All-In-One Account **Account**.

### Appreciation

**The Real Estate Financial Planner**™ software, we can set what our expectation is for the rate at which the **Property** value increases over time. For the Typical 20% Down-Payment Rental Property **Property**, we are assuming that **Property** values are going up at a rate of 3% per year.

### Rent and Rent Appreciation Rate

We are buying this **Property** and immediately renting it. The rent we will get at the time of purchase is $3,706.98 per month.

**Property** values). **The Real Estate Financial Planner**™ software allows us to specify at what rate the rents are going up each year. For this **Property** we have assumed that rents are going up at a rate of 3% per year.