Copy Scenario

Copy this new  Scenario to your Real Estate Financial Planner™ software:

29 Syracuse, New York Nomad™ Starting with $0

This is the same as the Baseline Scenario:

https://refp.io/177497

Except...

  • Starting with $0 in the account
  • Requires 6 months reserves of personal expenses to buy a property
  • Requires 6 months reserves for the property they're buying to be able to buy another property
  • Requires 6 months reserves of all owned properties to be able to buy another property

The  Scenario you want to copy into your Real Estate Financial Planner™ software has the following:

  • 2  Accounts (including  Default Cash Account)
  • 1  Properties
  • 2  Rules

Please register for a Forever Free Account or Login to your existing Real Estate Financial Planner™ software to copy this  Scenario into your account.

Create "Forever Free" Account

Once it is in your account, you can view detailed  Charts for dozens of variables and edit any of the assumptions for  Accounts,  Properties, and  Rules to run your own what-if  Scenarios.

You can change things like:

  • Adjust how much money you start with in any  Account
  • Model variable stock, bond and real estate rates of returns
  • Change how many  Properties you buy and when you buy them
  • Set your own personalized target monhtly income in retirement to indicate when you reach financial independence
  • Model receiving social security payments when you reach a certain age
  • See what happens if there is a market crash or correction for your stocks, bonds and/or your real estate
  • Tweak price and rent appreciation rates for individual  Properties or all your  Properties
  • Find out what happens if you pay off your mortgages early... with cash flow each month or only when you have enough to pay off the  Property in full
  • Use equity in  Properties you own to cash-out refinance and buy more  Properties or invest it elsewhere
  • Model buying more  Properties than you need then selling off any extras to pay off the remaining  Properties to achieve your own user-defined financial independence number
  • Evaluate your own safe withdrawal rate and see how it impacts your investment plan
  • And much, much more...

Scenario

  • Modeled for 1200 months (100 years)
  • 20% effective income tax rate
  • 3% inflation rate
  • 6.5% mortgage interest rate
  • 4% yearly safe withdrawal rate (SWR)
  • $5,000 minimum target monthly income in retirement (MTMIR) in today's dollars
  • $8,000 ideal target monthly income in retirement (ITMIR) in today's dollars

Accounts

Summary of assumptions for the Account in this Scenario.

  • Account Name:  All-In-One Account Earning 7%/year, Start with $0
  • $0 starting account balance
  • 7% yearly rate of return (at start)
  • Asset Type: Stocks

Properties

Summary of assumptions for the Property in this scenario (at the start of the Scenario).

Property Address/Description: Syracuse, New York Nomad™ Property - $0 Start

  • Syracuse, NY
  • This  Property is a Dynamic resuable template of a property that we can buy multiple copies of using  Rules.
  • This  Property is a Nomad™ property that you live in until you buy your next owner-occupant property. When you buy your next Nomad™ property, this one becomes a rental.
  • This  Property uses dynamic  Rules to determine when we buy/sell it in the  Scenario.
  • Account for down payment, income and expenses for this  Property:  All-In-One Account Earning 7%/year, Start with $0
  • $140,609 property value and purchase price and it goes up at a rate of 3% per year.
  • 5% of purchase price for down payment.
  • 1% of purchase price in closing costs at time of purchase.
  • No seller concessions.
  • 6.5% is the mortgage interest rate with a term of 360 month mortgage term.
  • Private Mortgage Insurance (PMI) at a rate of 0.85% of the initial loan balance until the loan-to-value drops below 80%.
  • $1,522.50 per month in rent but rent increases at a rate of 3% per year.
  • 3% of the monthly income is the assumed vacancy rate.
  • 10% of the monthly income is the assumed maintenance rate.
  • 3.156% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $140,609 that's about $4,437.62 per year in property taxes at the start and it changes as the property value changes.
  • 0.344% of the value of the property each year is the assumed property insurance rate. Based on the initial value of $140,609 that's about $483.69 per year in insurance costs at the start and it changes as the property value changes.
  • This is a residential property and 15% of purchase price is considered the value of the land (when doing our depreciation calculation).

Return in Dollars Quadrant™

The following is the estimated Return in Dollars Quadrant™ for this property based on its original assumptions for the first year.

Return On Investment Quadrant™

The following are the estimated Return on Investment Quadrant™ for this property for year 1. We take the returns for each component and divide by the "Total Cost to Close" (down payment, rent ready costs, closing costs - seller concessions). This first one ignores reserves.

ROIQ+R6™

Return on Investment Quadrant™ with 6 months of reserves at 1%.

ROIQ+R12™

Return on Investment Quadrant™ with 12 months of reserves at 8%.

How to Calculate

See the steps walking you through how to calculate various metrics for this property.

Walkthrough how to calculate...

Rules

These are the Rules included with this Scenario.

Buy Property When Account Has Down Payment - Buying 10 Syracuse, New York Properties

  • This  Rule runs for the entire  Scenario.
  • This  Rule will buy another copy of the Dynamic (template property) Syracuse, New York Nomad™ Property - $0 Start whenever  All-In-One Account Earning 7%/year, Start with $0 has enough for down payment and closing costs...
    • Plus at least 6 months of reserves for the property we're buying
    • Plus at least 6 months of reserves for all personal expenses
    • Plus at least 6 months of reserves for all other  Properties owned
  • This  Rule requires that with the purchase of the property with this  Rule that Debt-To-Income ratio remains below 45%.
  • This  Rule will only buy 10  Properties maximum. But if you sell any, it will try to buy more to replace them.

Paycheck and Personal Expenses - Paycheck From Job and Personal Expenses Saving $1,000 Per Month

  • This  Rule runs for the entire  Scenario.
  • Depositing both your paycheck and pulling expenses out of the same  All-In-One Account Earning 7%/year, Start with $0.
  • Both paycheck and personal expenses will be Inflation Adjusted.
  • Gross paycheck is $5,000 Inflation Adjusted.
  • Assuming a tax rate of 20% on your paycheck.
  • Net paycheck (after taxes) is $4,000 Inflation Adjusted per month.
  • The paycheck will stop when they reach "Financial Independence" (goal of Minimum Target Monthly Income in Retirement achieved).
  • Personal expenses are $3,000 Inflation Adjusted per month.

Significant Events

These are the  Significant Events for this Scenario.

  • Month 34  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 46  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 58  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 70  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 82  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 94  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 106  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 118  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 130  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 142  Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
  • Month 228  Achieved Financial Independence Goal
  • Month 345  Achieved Ideal Financial Independence Goal
  • Month 394  Paid Off Mortgage
  • Month 406  Paid Off Mortgage
  • Month 418  Paid Off Mortgage
  • Month 430  Paid Off Mortgage
  • Month 442  Paid Off Mortgage
  • Month 454  Paid Off Mortgage
  • Month 466  Paid Off Mortgage
  • Month 478  Paid Off Mortgage
  • Month 490  Paid Off Mortgage
  • Month 490  Achieved 2 X Ideal Financial Independence Goal
  • Month 502  Paid Off Mortgage