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Copy this new  Scenario to your Real Estate Financial Planner™ software:

Plain Jane - Saving 15% in Stocks and Home Owner - Stops Working After 20 Years

The  Scenario you want to copy into your Real Estate Financial Planner™ software has the following:

• 2  Accounts (including  Default Cash Account)
• 1  Properties
• 4  Rules

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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.

Scenario

• Modeled for 720 months (60 years)
• 18.72% effective income tax rate
• 3% inflation rate
• 4.875% mortgage interest rate
• 4% yearly safe withdrawal rate (SWR)
• $3,000 minimum target monthly income in retirement (MTMIR) in today's dollars
• $20,000 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
• $5,000 starting account balance
• 8% yearly rate of return (at start)
• Asset Type: Cash

Properties

Summary of assumptions for the Property in this scenario (at the start of the Scenario).

Property Address/Description: House of Plain Jane

• This  Property is a Dynamic resuable template of a property that we can buy multiple copies of using  Rules.
• This  Property 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.
• This  Property uses dynamic  Rules to determine when we buy/sell it in the  Scenario.
• Account for down payment, income and expenses for this  Property:  All-In-One Account
• $200,000 property value and purchase price and it goes up at a rate of 3% per year.
• 0% of purchase price for down payment.
• 0% of purchase price in closing costs at time of purchase.
• No seller concessions.
• 3.375% is the mortgage interest rate with a term of 360 month mortgage term.
• Private Mortgage Insurance (PMI) at a rate of 0.8% of the initial loan balance until the loan-to-value drops below 80%.
• $1,536.76 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.
• 10% of the monthly income is the assumed property management rate.
• 0.65% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $200,000 that's about $1,300 per year in property taxes at the start and it changes as the property value changes.
• 0.4% of the value of the property each year is the assumed property insurance rate. Based on the initial value of $200,000 that's about $800 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).

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.

Set Value On Accounts - Randomize Stock Market Returns

• This  Rule runs for the entire  Scenario.
• Changes the value of Yearly Rate of Return on  All-In-One Account.
• The  Rule sets the value of Yearly Rate of Return each month that it runs using a random number between -44.33 and 65.47 with a standard deviation of 18.300 in discrete steps of 0.100.
• However, values can never be lower than -44.330 and never higher than 65.470.

Buy Property When Account Has Down Payment - Buy Owner-Occupant House

• This  Rule runs for the entire  Scenario.
• This  Rule will buy another copy of the Dynamic (template property) House of Plain Jane whenever  All-In-One Account has enough for down payment and closing costs.
• This  Rule ignores Debt-To-Income ratio.
• This  Rule will only buy 1  Properties maximum. But if you sell any, it will try to buy more to replace them.

Paycheck and Personal Expenses - Personal Expenses

• This  Rule runs for the entire  Scenario.
• No paycheck, but pulling expenses out of  All-In-One Account.
• Paycheck will be Inflation Adjusted.
• Assuming no taxes on this paycheck. It is possible this is already an "after-tax" amount.
• This paycheck will not stop at retirement.
• Personal expenses are $1,150 Inflation Adjusted per month.

Paycheck and Personal Expenses - Job Income

• This  Rule starts at the beginning of the  Scenario but stops running at month 240.
• Depositing paycheck into  All-In-One Account but no personal expenses with this  Rule.
• Personal expenses will be Inflation Adjusted.
• Gross paycheck is $3,333 Inflation Adjusted.
• Assuming a tax rate of 18.72% on your paycheck.
• Net paycheck (after taxes) is $2,709.06 Inflation Adjusted per month.
• The paycheck will stop when they reach "Financial Independence" (goal of Minimum Target Monthly Income in Retirement achieved).

Significant Events

These are the  Significant Events for this Scenario.

• Month 1  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
• Month 240  End Income Source
• Month 361  Paid Off Mortgage