The Real Estate Financial Planner™ Blog

Welcome to the thrilling world of Real Estate Financial Planning! If you’re on the hunt for savvy investment strategies, transformative financial insights, and the ultimate guide to building wealth through real estate, you’ve just hit the jackpot. Whether you’re a seasoned investor or just dipping your toes into the vast ocean of real estate opportunities, our blog is your new go-to resource.

Why real estate, you ask? Simple. It’s one of the most powerful vehicles for generating long-term wealth and achieving financial freedom. And who doesn’t dream of that? But here’s the kicker: navigating this world can be as complex as it is rewarding. That’s where we come in. Our content is designed not only to enlighten you but also to inspire action and drive results.

Imagine unlocking the secrets to acquiring lucrative rental properties that pay for themselves and then some. Picture yourself living off passive income, where your investments work for you, not the other way around. It’s not just a dream; it’s a very achievable reality, and we’re here to show you how.

From deep dives into market analysis, investment strategies, and financial planning, to actionable tips on property management and scaling your portfolio, our blog covers it all. We believe in cutting through the noise to bring you straightforward, actionable advice that makes a difference.

But it’s not just about the “what” and the “how”; it’s also about the “who.” Meet James, a former real estate broker turned investment guru, who lives and breathes real estate. James has walked the walk, transforming his passion for real estate into a thriving portfolio of income-generating properties. Now, he’s here to share his wealth of knowledge, experiences, and insights with you.

Our mission is simple: to empower you with the knowledge and tools you need to make informed decisions, maximize your returns, and build a financial legacy through real estate. We’re here to guide you every step of the way, from your first investment property to your hundredth.

So, are you ready to embark on this exciting journey with us? Let’s dive in and explore the endless possibilities that real estate investing has to offer. Together, we’ll unlock the door to financial freedom and success. Welcome to the Real Estate Financial Planning blog, where your financial dreams are just a blog post away. Let the adventure begin!

The Ultimate Guide to Property Taxes on Rental Properties

If you’re looking to learn more about property taxes on rental properties, then check out our Ultimate Guide to Property Taxes on Rental Properties. Property taxes are taxes paid—usually to the county, city and/or metropolitan districts—on rental properties. It is important to estimate property taxes when analyzing deals you’re considering buying. It is one of the primary inputs on The World’s Greatest Real Estate Deal Analysis Spreadsheets™ for you to enter when you start your deal analysis. You can download the spreadsheet for free. You typically get the estimated property tax value from your real estate agent, the MLS sheet … Read more

The Ultimate Guide to Purchase Price on Rental Properties

If you’re looking to learn more about the purchase price on rental properties, then check out our Ultimate Guide to Purchase Price on Rental Properties. Purchase price is the price you pay to buy a rental property. Purchase Price to Improve Cash Flow While the following video is not exclusively purchase price on rental properties, it does discuss some ideas related to purchase price and how it can impact improving cash flow. In general, the lower your purchase price typically the better cash flow will be for a set amount of rent and other income on the property. A general … Read more

Ultimate Guide to Mortgage Payments for Rental Properties

If you’re looking to learn more about mortgage payments with an emphasis on mortgage payments for rental properties, then check out our Ultimate Guide to Mortgage Payments for Rental Properties. If a mortgage payment is on an amortizing loan (a loan that pays off after a certain period of time like a 15-year or 30-year mortgage) then you will want to use an amortization table, excel, google or a business calculator that does amortization calculations to calculate what the payment is. For example, in Excel the formula is: Mortgage Payment = PMT(6.5%/12,360,400000,0,0) Where: PMT is the forumal in Excel .0065 … Read more

Hierarchy of Real Estate Metrics

Calculations for analyzing real estate investments become increasing more complicated and inaccurate as assumptions increase. For example, a real estate metric might be Rent on the property. This is a primary input, one of the least complicated and most one of the most accurate metrics you can have. However, if you use Rent to calculate Gross Potential Income (GPI), you’ll need to use Rent and Other Income (another primary input) to calculate GPI. That means that GPI is a compound calculation requiring more than one input introducing complication and additional inaccuracies (two inputs each with their own level of possible … Read more

The Ultimate Guide to Other Income on Rental Properties

If you’re looking to learn more about income other than rent on rental properties, then check out our Ultimate Guide to Other Income on Rental Properties. Other income is income received on rental properties for things other than the primary rent. Some common examples include: On-site laundry Pet rent Storage unit rent Garage unit rent RV parking rent Upgrade rent (fee for installing something that you wouldn’t have otherwise installed on a property upon the request of the tenant) Utilities bill-back Pool/club house access How to Increase Income on Rental Properties While the following video is not exclusively about how … Read more

The Ultimate Guide to Rent on Rental Properties

If you’re looking to learn more about rent on rental properties, then check out our Ultimate Guide to Rent on Rental Properties. Rent is income received from renters, tenants and/or tenant-buyers on rental properties. How to Increase Rent on Rental Properties If you want to improve cash flow on your rental properties, then increasing rent is one strategy you might want to consider implementing. Watch our special workshop on how to improve cash flow to learn the strategies for improving cash flow including how to increase rents. How to Increase Rent Collected on Rental Properties Increasing the amount of rent … Read more

The Ultimate Guide to Gross Potential Income on Rental Properties

If you’re looking to learn more about Gross Potential Income (also abbreviated as GPI) for rental properties, then check out our Ultimate Guide to Gross Potential Income on Rental Properties. Gross Potential Income = Rent + Other Income GPI is defined as the sum of all the rent and other income sources on a property. It is the most the property could potentially earn before any expenses or vacancies. Calculating Gross Potential Income The following walks you through calculating Gross Potential Income on a rental property. Secondary Input Gross Potential Income Secondary is considered a secondary input in the Hierarchy … Read more

The Ultimate Guide to Operating Expenses on Rental Properties

If you’re looking to learn more about Operating Expenses (also abbreviated as OpEx) for rental properties then check out our Ultimate Guide to Operating Expenses on Rental Properties. Operating Expenses = Taxes + Insurance + HOA + Utilities + Maintenance + Management + Other Expenses OpEx is defined as the sum of: Taxes Insurance HOA Utilities Maintenance Management Other Expenses We are specifically excluding all financing as that is not considered part of Operating Expenses on a rental property. Calculating Operating Expenses The following walks you through calculating Operating Expenses on a rental property.

Cash Flow

Ep 5 - Andrea - Total Cash Flow - Inflation Adjusted

What is cash flow for rental properties? Why is it important? How is it calculated? And cash flow reports for your investments. That’s what we’ll cover here. First, what is cash flow for rental properties? Cash flow is the money generated from your rentals after you account for all the income from the property and subtract all the expenses for the property. Income from your property might include: Rent from properties Option fees on properties Additional mid-month payments Utility bill back Income from onsite amenities like laundry or internet Appliance rent IMPORTANT NOTE: We do not typically consider Cash Flow … Read more