The Real Estate Financial Planner Blueprint™
24 Sell Some Rentals to Pay Off Other Rentals if FI While Nomading™

Accounts

This Scenario is made up of 2 Accounts. Let's look at each one in more detail.

Account

By the way, we assume that all dates in our Scenarios are for the first of the month. This significantly simplifies the math and does not significantly impact the results of the modeling.

The Special Account

The Account is a special type of Account for us for a couple of reasons.

First, it is the only Account that is required to be present in every Scenario. We require it because it is the special Account we go to when there is not enough money in another Account to withdraw money.

For example, if the Scenario ends up having negative cash flow on a Property and there is not enough money in the Account that we would normally be depositing and withdrawing the income and expenses of that Property to, where do we get the money from to handle that negative cash? In that case, we'd take as much as we could from the Account that was supposed to be handling the income and expenses of the Property and then any deficit would be taken from this special Account.

Because the Account is the go-to Account when we have a shortage of money, it is also the only Account that can have a negative balance.

You can think of it as a way of keeping track of how much extra money from outside the model that you would need to add to the Scenario and when.

Cash flow is important to the success of your investing endeavors and we have several classes to help you maximize it on every property you own.

Cash Flow Explosion Class Recording
https://app.RealEstateFinancialPlanner.com/cash-flow-explosion-2016-edition/

Buying Down Interest Rates Class Recording
https://app.RealEstateFinancialPlanner.com/buying-down-interest-rates-2020-edition/

Another interesting fact about the special Account is that it does not earn any interest. The return on it is always 0% because it is intended to be looked at as a special Account that only stores cash.

Some folks may choose to just use the default Account when running their own Scenarios to simplify their modeling and see how much money they'll need to implement a specific strategy. However, if you want your excess cash to be earning a return like you would in a typical savings or investment Account, you would want to use an Account other than the Account since the Account can never earn a return on money in that Account.

All-In-One Account Earning 7%/year Account

We start tracking the Account we call the All-In-One Account Earning 7%/year Account at the very start of the Scenario, which we assume to be Mar 2025. We assume that it had an initial balance of $25,624.62.

For this Account, we assume that you're earning a rate of return on any money in that Account of 7% per year.

How The Real Estate Financial Planner™ Software Calculates Returns

The Real Estate Financial Planner™ software calculates your return on investment monthly even though the returns are typically stated as a yearly return. So, each month, based on the amount that is in the Account that month, The Real Estate Financial Planner™ software will calculate what the return was for that month only.

It is also important to note that we're not just dividing the return by 12 to get the month return. Instead we are calculating what return you'd need to get monthly such that if it were compounding, it would be the yearly return. In other words, for this Account it would not be 7% ÷ 12 months which is 0.58333% per month. Instead, it would be 0.56541% per month.

This is similar to how we calculate other compounding returns in The Real Estate Financial Planner™ software as well like appreciation and rent appreciation when dealing with Properties.

Buy Property When Account Has Down Payment

We will explain the Rules in more detail in a moment, however, I would like to show you which Rules do apply to this Account and give you some very basic information about what each Rule does.

This Rule for this Account runs for the entire Scenario.

With the Buy Property When Account Has Down Payment, we buy a version of the Typical Lewisville, Texas Nomad™ 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.

Since the Typical Lewisville, Texas Nomad™ Property Property is really a template of a Property (what we call a Dynamic Property) we could buy multiple copies of it. We do limit the number that we can buy using this Rule to 10 total.

Paycheck and Personal Expenses

This Rule for this Account runs for the entire Scenario.

With the Paycheck and Personal Expenses, we collect a paycheck and pay our personal living expenses out of the All-In-One Account Earning 7%/year Account each month. We start out collecting $10,000 Inflation Adjusted from our paycheck and paying out $7,000 Inflation Adjusted in personal expenses each month. Both our paycheck and personal expenses increase with inflation over time. We do pay taxes on the amount we collect from our paycheck at a rate of 20%.

Sell Properties and Pay Off Mortgages To Retire

This Rule for this Account runs for the entire Scenario.

Summary of Accounts

These are the Accounts that we have in this Scenario.

Account	Date Opened	Opening Balance
Default Cash Account	Mar 2025	$0
All-In-One Account Earning 7%/year	Mar 2025	$25,624.62
Total for Scenario:		$25,624.62

Based on the Accounts that we have when we start this Scenario, it looks like we have a total starting balance in all the Accounts of $25,624.62.

Next, let's take a look at the Properties that we have in this Scenario.

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Scenario into my Real Estate Financial Planner™ Software Account

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