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

19 Buy 10 Nomads™ with .5 Better Mortgage Interest Rate

This is the same as the Baseline Scenario:

https://refp.io/185484

Except...

Nomad™ properties have a .5 better (lower) Mortgage Interest Rate

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

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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)
$6,000 minimum target monthly income in retirement (MTMIR) in today's dollars
$9,000 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
$19,209.14 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: Typical Athens, Georgia Nomad™ Property with .5 Lower Interest Rate

Athens, GA
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
$274,416 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% 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%.
$2,257.50 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.
1.053% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $274,416 that's about $2,889.60 per year in property taxes at the start and it changes as the property value changes.
0.878% of the value of the property each year is the assumed property insurance rate. Based on the initial value of $274,416 that's about $2,409.37 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 Athens, Georgia Nomad™ Properties with .5 Lower Interest Rate

This Rule runs for the entire Scenario.
This Rule will buy another copy of the Dynamic (template property) Typical Athens, Georgia Nomad™ Property with .5 Lower Interest Rate whenever All-In-One Account Earning 7%/year 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.
Both paycheck and personal expenses will be Inflation Adjusted.
Gross paycheck is $6,000 Inflation Adjusted.
Assuming a tax rate of 20% on your paycheck.
Net paycheck (after taxes) is $4,800 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 $3,800 Inflation Adjusted per month.

Significant Events

These are the Significant Events for this Scenario.

Month 30 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 43 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 77 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 129 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 153 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 176 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 195 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 215 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 227 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 264 Achieved Financial Independence Goal
Month 336 Achieved Ideal Financial Independence Goal
Month 390 Paid Off Mortgage
Month 403 Paid Off Mortgage
Month 437 Paid Off Mortgage
Month 466 Paid Off Mortgage
Month 468 Achieved 2 X Ideal Financial Independence Goal
Month 489 Paid Off Mortgage
Month 513 Paid Off Mortgage
Month 536 Paid Off Mortgage
Month 555 Paid Off Mortgage
Month 575 Paid Off Mortgage
Month 587 Paid Off Mortgage