The Real Estate Financial Planner Blueprint™
27 Buy 10 All Cash Rental Properties as a Renter

Properties

So, let's go over the different Properties that are included with this Scenario. Later, when we go through each Significant Event, we can go through more specific numbers about that event. For now, I'll share with you our basic assumptions for each of the Properties.

Of course, you can use The Real Estate Financial Planner™ software to modify any of these assumptions (or more than one) to see how that would impact the plan.

Let's jump into it.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Oct 2036 (Month 140) for $240,960.21

First, the Typical All Cash Laredo, Texas Rental Property Property is a special type of Property we call Dynamic in The Real Estate Financial Planner™ software.

Dynamic Property

Dynamic Properties are based on a reusable template Property so we can buy multiple copies of it.

For example, let's say you wanted to model what it looks like to buy basically the least expensive new construction Property in your market every year for 10 years. Instead of having to create 10 different Properties in The Real Estate Financial Planner™ software, you could create one Dynamic Property and use Rules to buy one of them each year.

Dynamic Properties go up in value each year based on the appreciation rate you define just like Properties you own. So, the copy of the Dynamic Property you buy in year 10 is usually much more expensive than the copy of the Dynamic Property you buy in year 1 in our example. We also model rent appreciation. The rent you would collect would likely be higher if you used a positive rent appreciation rate.

With The Real Estate Financial Planner™ software you can use multiple Dynamic Properties with different characteristics to simulate changing real estate markets during your model. If you want to see what happens if you have a market downturn in a few years and how that impacts your Scenario, you could, for example, set up the Dynamic Property for your first 3 Properties to be different than the Dynamic Property that you use for your 4th through 10th purchases. Or, another way to model this would be with using Rules that change the appreciation rate, rent appreciation rate and dozens of other variables instead of using multiple Dynamic Properties. Either method of modeling works and which you decide to use is up to you. The Real Estate Financial Planner™ software is about giving you the tools to model as you see the world.

The opposite of Dynamic Properties is a specific Property you've purchased. In The Real Estate Financial Planner™ software, we would use this for Properties you have already purchased since you won't be buying that exact same Property again. Although, you could take a Property that you purchased in the past and say: I'm going to buy 10 properties exactly like this and make it a Dynamic Property to model buying them repeatedly.

Another way to think about the difference between Dynamic Properties and regular Properties is that you need to use Rules to purchase and sell a Dynamic Property because they don't use fixed dates for purchase and sale.

Back to the Property we are discussing for this Scenario: Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.Not all of our Scenarios or Blueprints™ are based on a specific city. Often, the Scenario is used to demonstrate a concept or investing strategy and is not based on a specific city. Other times, we may research the characteristics of Properties in a specific city and use those assumptions to model a Scenario.

In this particular Blueprint™, we are saying this Property is based on Properties in Laredo, TX. If you're from Laredo and think, "James is crazy: his assumptions are bonkers and in-credible (not at all credible)"... you don't have to raise your blood pressure... take a couple of deep breaths... breath in... breath out... and realize that you can just modify the assumptions using The Real Estate Financial Planner™ software and change them to better reflect your reality in Laredo, TX.

Purchase Price

In some real estate markets there are more buyers than sellers and sellers are fielding multiple offers on desirable Properties. We call this a seller's market.

In other markets, there are more sellers than buyers and sellers are competing to try to attract buyers to choose their Property. We call this a buyer's market.

The market conditions—and often just as importantly—the quality and attractiveness of the Property you're considering will determine whether you can make an offer to get a Property for less than the asking price and/or less than its current value or whether you might need to make an offer higher than asking price to overcome multiple offers from other buyers to get the Property.

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $240,960.21 and that it is worth $240,960.21. So, you're not getting the property at a discount at all and are paying full price.

If you find yourself in a market that is different than what we are modeling in this Scenario, you can use The Real Estate Financial Planner™ software to adjust our assumptions to model it more appropriately for what your market is and what you expect it to be in the future. Some folks will, and I believe justifiably so, model their personal plan for both a strong buyer's market in the future and then, change the assumptions to be for a strong seller's market. I believe you should know how your plan will perform in a variety of future market conditions to make sure you understand the pros and cons of a variety of what-if situations.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $240,960.21 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

Getting loans and closing on Properties have costs associated with them. We group all of these costs together into a single number that we call closing costs. Closing costs might include your share of title insurance, loan origination fees, points, closing services fees, flood certifications, appraisals and inspection costs.

For this Property we have assumed that the closing costs run about 1% of the $240,960.21 purchase price. 1% of $240,960.21 is approximately $2,409.60.

Seller Concessions

Sometimes we are able to negotiate with the seller to get them to contribute some money toward paying for our closing costs. When a seller contributes some money toward our closing costs we call these seller concessions.

The lender and, more often, the specific loan program you choose will regulate how much in seller concessions you can get and what it can be used for. In most cases, seller concessions can be used for things like buyer's closing costs, loan discount points, loan origination fees, prepaid items and any other fee, cost, charge, expense or expenditure. You cannot typically use seller concessions to pay for any of your down payment. You will need to come up with the entire $240,960.21 for down payment from your own funds.

In some areas if you don't use the seller concessions you've negotiated in your contact, any unused amounts revert to the seller. It is based on how the contract is written. This is the case in Colorado with the default wording of the Colorado Real Estate Commission approved Contract to Buy and Sell Real Estate. Just make sure you can use all the seller concessions you negotiate with your lender before writing and submitting your offer to the seller.

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

Sometimes when we buy a Property, it is not in rent-ready condition. Sometimes a Property will require you spend some money to prepare a Property to be able to be move-in ready. We call this expense rent ready costs.

While it can be difficult to achieve this, my preferred method of purchasing Properties is to buy Properties that have little or no rent ready costs. By minimizing your rent ready costs it reduces the amount of capital required to purchase the Property beyond the down payment and closing costs. Once we optimize our down payment and closing costs by choosing great team members, rent ready costs are one of the few additional variables that we have control over through Property selection to minimize our initial overall investment with acquiring Properties.

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

For Properties you are renting, you get tax benefits known as depreciation. Depreciation varies depending on whether you have a residential Property or commercial Property. Residential Properties are depreciated over 27.5 years while commercial Properties are depreciated over 39 years.

Since depreciation can reduce the amount you spend on taxes, and that means more money in your pocket, we can consider the after-tax impact of your depreciation as a form of spendable cash flow. As we buy more expensive Properties the cash flow from depreciation increases as well.

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For each Property, The Real Estate Financial Planner™ software allows us to select which Account we will use for down payment and expenses of purchasing the Property. Plus, we can select which Account we will use for depositing income from the Property like rent and subtract the expenses for the Property like the mortgage payment.

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

Appreciation is the tendency for Property values to go up over time. Property values can go up, go down or stay the same, but historically, over a long period of time, Property values tend to go up.

Want to learn more than you really ever wanted to know about appreciation? Great news! I taught a whole class on building wealth from appreciation on rental Properties; check it out below.

Understanding Appreciation Class Recording
https://app.RealEstateFinancialPlanner.com/understanding-appreciation-nomad-investor-club-edition/

Cash Flow Versus Appreciation Class Recording
https://app.RealEstateFinancialPlanner.com/cash-flow-versus-appreciation/

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $2,107.18 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

We will explain the Rules in more detail in just a bit, however, I would like to show you which Rules do apply to the Typical All Cash Laredo, Texas Rental Property Property and give you some very basic information about what each Rule does.

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Jul 2043 (Month 221) for $294,168.79

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $294,168.79 and that it is worth $294,168.79. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $294,168.79 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $294,168.79 purchase price. 1% of $294,168.79 is approximately $2,941.69.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $2,572.49 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Jun 2048 (Month 280) for $340,183.27

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $340,183.27 and that it is worth $340,183.27. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $340,183.27 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $340,183.27 purchase price. 1% of $340,183.27 is approximately $3,401.83.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $2,974.88 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in May 2052 (Month 327) for $381,937.30

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $381,937.30 and that it is worth $381,937.30. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $381,937.30 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $381,937.30 purchase price. 1% of $381,937.30 is approximately $3,819.37.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $3,340.02 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Jul 2055 (Month 365) for $419,414.35

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $419,414.35 and that it is worth $419,414.35. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $419,414.35 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $419,414.35 purchase price. 1% of $419,414.35 is approximately $4,194.14.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $3,667.75 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Mar 2058 (Month 397) for $453,811.91

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $453,811.91 and that it is worth $453,811.91. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $453,811.91 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $453,811.91 purchase price. 1% of $453,811.91 is approximately $4,538.12.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $3,968.56 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Mar 2061 (Month 433) for $495,892.52

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $495,892.52 and that it is worth $495,892.52. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $495,892.52 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $495,892.52 purchase price. 1% of $495,892.52 is approximately $4,958.93.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $4,336.55 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Feb 2066 (Month 492) for $573,461.04

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $573,461.04 and that it is worth $573,461.04. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $573,461.04 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $573,461.04 purchase price. 1% of $573,461.04 is approximately $5,734.61.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $5,014.88 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Jan 2070 (Month 539) for $643,847.55

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $643,847.55 and that it is worth $643,847.55. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $643,847.55 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $643,847.55 purchase price. 1% of $643,847.55 is approximately $6,438.48.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $5,630.41 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Typical All Cash Laredo, Texas Rental Property Property
Purchased in Apr 2073 (Month 578) for $708,767.88

The Typical All Cash Laredo, Texas Rental Property Property is a Dynamic Property.

Laredo, TX

This Property is modeled after Properties in Laredo, TX.

Purchase Price

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming you are purchasing the Property for $708,767.88 and that it is worth $708,767.88. So, you're not getting the property at a discount at all and are paying full price.

Initial Loan

We have assumed that you're able to get a 30 year (360 month) loan on this Property at an interest rate of 0% with 100% down payment. That means you'd need to come up with $708,767.88 as a down payment and that you'd be getting a loan for $0. The monthly payment on a $0 loan for 30 years at 0% would be $0 per month.

Closing Costs

For this Property we have assumed that the closing costs run about 1% of the $708,767.88 purchase price. 1% of $708,767.88 is approximately $7,087.68.

Seller Concessions

You were unable to get the seller to contribute any money in seller concessions for this Property.

Rent Ready Costs

For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that it is already in rent ready condition and it does not require any additional work or money.

Depreciation

Since this Property is a residential Property, we can depreciate the value of the building (excluding the value of the land) over 27.5 years.

Accounts for the Typical All Cash Laredo, Texas Rental Property Property

For this Property, we are using the same Account for both the purchase and operating income and expenses: the All-In-One Account Earning 7%/year Account.

Appreciation

With The Real Estate Financial Planner™ software, we can set what our expectation is for the rate at which the Property value increases over time. For the Typical All Cash Laredo, Texas Rental Property Property, we are assuming that Property values are going up at a rate of 3% per year.

Rent and Rent Appreciation Rate

We are buying this Property and immediately renting it. The rent we will get at the time of purchase is $6,198.13 per month.

Over time, rents tend to go up (just like Property values). The Real Estate Financial Planner™ software allows us to specify at what rate the rents are going up each year. For this Property we have assumed that rents are going up at a rate of 3% per year.

Buy Property When Account Has Down Payment

This Rule for this Property runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical All Cash Laredo, Texas Rental Property Property when the All-In-One Account Earning 7%/year Account has enough to cover the total cost to close (which includes any down payment and closing costs) required to make the purchase of the Property.

We do limit the number of copies of the Typical All Cash Laredo, Texas Rental Property Property that we can buy using this Rule to 10 total.

Summary of Properties

The following table summarizes the number of Properties that we buy in this Scenario so you can quickly see when each Property has been purchased and, if applicable, sold.

Address/Description Bought/Sold
Dynamic Typical All Cash Laredo, Texas Rental Property 1 Oct 2036 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 2 Jul 2043 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 3 Jun 2048 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 4 May 2052 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 5 Jul 2055 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 6 Mar 2058 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 7 Mar 2061 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 8 Feb 2066 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 9 Jan 2070 Hold
Dynamic Typical All Cash Laredo, Texas Rental Property 10 Apr 2073 Hold

Again, when we say a Property is Dynamic that means that the Property was based on a template of a Property that we could have bought multiple copies of.

When a Property does not have a sale date and instead says Hold, that means that we never end up selling the Property. Instead, we keep it for the entire duration of the Scenario and never sell it.

The following is a graphical summary of the number of Properties we've purchased and when they were bought. It shows the number of Properties owned on the vertical axis and time in the form of number of months into the Scenario on the horizontal axis.

Copy Scenario into my Real Estate Financial Planner™ Software Account

Blueprint™ Menu of Sections

Reports