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Previously, in our series of Real Estate Investor Stories, we met Peter from Denver, Colorado. Previously, we has focused on buying ten 20% down payment rentals to achieve financial independence. Today, Peter is going to go consider saving up 25% instead of 20%. Why? Because the interest rate for 20% down payment loans is about 3.625% right (as I write this) and 25% down payments are 3.25%. Peter is wondering: Will waiting a little longer to save up for my down payment but getting a lower interest rate and borrowing less improve my cash flow and allow me to achieve … Read more
Over the last several weeks, I’ve been telling a series of unrelated Real Estate Investor Stories. Each story featured a different investor, their situation, their fears, their strengths, their resources and ultimately how their plan could have worked out based on output from the Real Estate Financial Planner™ software. Today, I am trying something different. One character, Peter, from Denver… considers a variety of different real estate investing strategies. In this first story, we meet Peter, a young professional in Denver seeking financial independence. About this first episode with Peter: Peter is starting with $25,000 in savings He has a … Read more
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This is similar to Scenario 006 except in this Scenario we are adding in that you start collecting $2,000 per month (in today’s dollars) in May, 2040. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property. We repeat this process waiting at least a year between each purchase to comply with the owner-occupant lender requirement to live in the property for … Read more
This is similar to Scenario 005 except in this Scenario we are buying 1 home to live in and 1 using the BRRR strategy. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI). At the same time, we find a property that we can buy at a very large discount and purchase it with hard money. After a year of seasoning, we refinance the property with a rate and term refinance at a slightly higher rate than the 5% down owner occupant loan we got for our other purchase and leave no … Read more
This is similar to Scenario 005 except in this Scenario we are Nomading™ ten times. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property. We repeat this process waiting at least a year between each purchase to comply with the owner-occupant lender requirement to live in the property for at least a year. If we have less than $10,000 in reserves … Read more
This is similar to Scenario 004 except in this Scenario we are Nomading™ twice. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property. I will be adding to this page in a future revision, but wanted to get it posted for you now as I prepare additional Scenarios for upcoming classes I am teaching. Scenarios with Fixed Rate of Return on … Read more
This is similar to Scenario 002 except in this Scenario we are buying a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead of renting. I will be adding to this page in a future revision, but wanted to get it posted for you now as I prepare additional Scenarios for upcoming classes I am teaching. Scenarios with Fixed Rate of Return on Stocks Scenarios Starting With $100K Scenarios With Income and Expenses Scenarios With Lender-Paid Private Mortgage Insurance Scenarios With Stocks and Real Estate
In this “Sample Scenario”, our third, we add to the previous Scenario an additional paycheck for $1,200 per month that begins in February, 2040. This is an example of how you might model starting to receive a check from social security on a specific date in the future with the Real Estate Financial Planner™ software. Adding an Additional, Future Income Stream Like Social Security To add this additional, future income stream to your model we use another Paycheck and Personal Expenses rule. In Sample Scenario 002 and this Scenario, the Paycheck and Personal Expenses rule for the $5,000 in personal … Read more
