The Real Estate Financial Planner Blueprint™
02 Nomad™ Earn 10% Less Income from Job

Summary At The End of Month 393

Let's summarize what your position looks like at the end of Month 393 (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 393.

Net Worth

At the end of Month 393, 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 393 is $312,883.80.

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 393. Our total Account balance this month is $224,540.78 This is after all the income and expenses for the month.

The following chart shows how the total Account balance of $224,540.78 for all your Accounts is distributed over your 2 Accounts in Month 393.

Total Equity

We can look at equity in one of three ways:

  1. Total Equity
  2. Cash Out Refinance Equity
  3. Sell With Real Estate Agent Equity

With total equity we are just looking at the difference between the Property value and the mortgage balance. In Month 393, we have $88,343.02 in total equity. The following is a chart showing the total equity of Properties in this Scenario.

With cash out refinance equity, we are assuming that your equity is defined as the amount of equity you could access if you did cash out refinances on all your Properties and were limited to being able to cash out refinance up to 75% loan-to-value. In Month 393, we have $0 in accessible total cash out refinance equity. For any Properties where we do not have enough equity to a do a cash out refinance and receive cash from the refi, we just won't refinance.

With sell-with-agent equity, we are assuming that you can access your equity by selling the property with a real estate agent. Furthermore, we assume that there is a cost to accessing this equity since you'll likely need to pay the real estate agent that represents you and the real estate agent that brings the buyer a commission. In addition to commissions, we also assume that you are paying 1% of the sale price in fees to sell with a real estate agent. That means that between the real estate commission (which we have estimated to be 6% between the two real estate agents) and the 1% in closing costs, that you really only net 93% of the sale price minus whatever your loan balance is. In Month 393, we have $0 in total accessible sell with real estate agent equity. If you owe more than 93% of the sale price on a Property, we are not considering that Property for a sale with a real estate agent.

Learn more about equity and return on equity and return on investment by watching this special class on different ways to calculate returns below.

Return on Investment and Return on Equity Class Recording
https://app.RealEstateFinancialPlanner.com/return-on-investment-and-return-on-equity/

Paychecks

The following chart shows how much gross you're bringing home from paychecks based on any Rules that are for paychecks in the Scenario.

Paychecks Adjusted For Inflation

While it may look like your gross paycheck is increasing rapidly over the last 10 years, if we adjust for inflation, you see a very different picture. The chart below shows us the gross monthly paycheck after we adjust it back to today's dollars and remove inflation.

Once we take into account the taxes you're paying on your gross paychecks, you're left over with your net from paychecks. That is shown in the chart below. For this month, it is $24,582.45.

Not counting the cost of the Property you are living in and not collecting rent on, you have $24,687.50 in personal expenses.

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 393, you will need to be earning, at a minimum, $28,530.76 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 753

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 $12,000 and a Ideal Target Monthly Income in Retirement™ of $18,000 at the time of achieving your  Goal of financial independence, let's look at the Phases of Financial Independence™.

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