Copy Scenario

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

Nomad™ by Proxy - 2 People x 4 Years Each (Staggered By 2 Years)

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

• 2  Accounts (including  Default Cash Account)
• 2  Properties
• 6  Rules

Please register for a Forever Free Account or Login to your existing Real Estate Financial Planner™ software to copy this  Scenario into your account.

Create "Forever Free" Account

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 480 months (40 years)
• 21.96% effective income tax rate
• 3% inflation rate
• 2.625% mortgage interest rate
• 4% yearly safe withdrawal rate (SWR)
• $5,000 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
• $300,000 starting account balance
• 8% yearly rate of return (at start)
• Asset Type: Cash

Properties

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

Property Address/Description: Nomad™

• 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
• $390,000 property value and purchase price and it goes up at a rate of 3% per year.
• 5% of purchase price for down payment.
• 1% of purchase price in closing costs at time of purchase.
• No seller concessions.
• 2.625% is the mortgage interest rate with a term of 360 month mortgage term.
• Private Mortgage Insurance (PMI) at a rate of 0.7% of the initial loan balance until the loan-to-value drops below 80%.
• $2,200 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.
• 0.65% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $390,000 that's about $2,535 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 $390,000 that's about $1,560 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

Property Address/Description: Nomad™ for Proxy

• This  Property is a Dynamic resuable template of a property that we can buy multiple copies of using  Rules.
• 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
• $390,000 property value and purchase price and it goes up at a rate of 3% per year.
• 5% of purchase price for down payment.
• 1% of purchase price in closing costs at time of purchase.
• No seller concessions.
• 2.625% is the mortgage interest rate with a term of 360 month mortgage term.
• Private Mortgage Insurance (PMI) at a rate of 0.7% of the initial loan balance until the loan-to-value drops below 80%.
• $2,200 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.
• 0.65% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $390,000 that's about $2,535 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 $390,000 that's about $1,560 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.

Buy Property When Account Has Down Payment - Property To Live In

• This  Rule runs for the entire  Scenario.
• This  Rule will buy another copy of the Dynamic (template property) Nomad™ whenever  All-In-One has enough for down payment and closing costs...
• Plus at least $10,000 Inflation Adjusted left over in the  Account
• 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 Income and Expenses

• This  Rule runs for the entire  Scenario.
• Depositing both your paycheck and pulling expenses out of the same  All-In-One.
• Both paycheck and personal expenses will be Inflation Adjusted.
• Gross paycheck is $5,000 Inflation Adjusted.
• Assuming no taxes on this paycheck. It is possible this is already an "after-tax" amount.
• The paycheck will stop when they reach "Financial Independence" (goal of Minimum Target Monthly Income in Retirement achieved).
• Personal expenses are $3,173 Inflation Adjusted per month.

Paycheck and Personal Expenses - Free Rent for Proxy

• This  Rule starts on month 1 and runs through month 48.
• No paycheck, but pulling expenses out of  All-In-One.
• 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 $700 Inflation Adjusted per month.

Buy Property On Specific Month Yearly - Nomad™ by Proxy 1 Person x 4 Years

Paycheck and Personal Expenses - Free Rent for Proxy 2

• This  Rule starts on month 25 and runs through month 72.
• No paycheck, but pulling expenses out of  All-In-One.
• 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 $700 Inflation Adjusted per month.

Buy Property On Specific Month Yearly - Nomad™ by Proxy 2nd Person x 4 Years

Significant Events

These are the  Significant Events for this Scenario.

• Month 1  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 1  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
• Month 13  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 25  Start New Income Source
• Month 25  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 25  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 37  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 37  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 48  End Income Source
• Month 49  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 61  Bought New Dynamic Property Based On Rule Buy Property On Specific Month Yearly
• Month 72  End Income Source
• Month 123  Achieved Financial Independence Goal
• Month 361  Paid Off Mortgage
• Month 361  Paid Off Mortgage
• Month 373  Paid Off Mortgage
• Month 385  Paid Off Mortgage
• Month 385  Paid Off Mortgage
• Month 397  Paid Off Mortgage
• Month 397  Paid Off Mortgage
• Month 399  Achieved Ideal Financial Independence Goal
• Month 409  Paid Off Mortgage
• Month 421  Paid Off Mortgage