The Real Estate Financial Planner Blueprint™
Ep 23 Norm and Norma - $25K Fix and Flips Every 6 Months - Buy 20% Down Payment Rentals

Summary At The End of Month 475

Let's summarize what your position looks like at the end of Month 475 (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 475.

Net Worth

At the end of Month 475, 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 475 is $24,170,305.03.

Rent and Cash Flow

By the end of Month 475 the total monthly rent you are now collecting from all the Properties for this Scenario is $84,046.57 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 10 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 475. Our total Account balance this month is $12,434,117.81 This is after all the income and expenses for the month.

The following chart shows how the total Account balance of $12,434,117.81 for all your Accounts is distributed over your 2 Accounts in Month 475.

Total Equity

At this point, you have over a million dollars in equity that you can access in the Properties. In fact, in Month 475 you have $11,736,187.22 in equity.

The following is a chart showing your total equity as it has built up over time up through and including Month 475.

Cash Flow

Your total cash flow for all Properties combined (excluding any Properties you are currently living in and not collecting rent on) is $51,307.34 per month in Month 475. 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 475, you will need to be earning, at a minimum, $0 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 487

Significant Event Description: Paid Off Mortgage

Cash Flow Power Meter

Since this  Property is now paid off, let's look at the Cash Flow Power Meter™.

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 $5,000 and a Ideal Target Monthly Income in Retirement™ of $10,000 at the time of achieving your  Goal of financial independence, let's look at the Phases of Financial Independence™.

Copy Scenario into my Real Estate Financial Planner™ Software Account

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