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32 10 20% Down Rental Properties (no Owner-Occupant)

This is the same as the Baseline Scenario:

https://refp.io/190176

Except...

Buy 10 rental properties with 20% down payments
Rent for entire time (do NOT buy an Owner-Occupant)

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.

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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)
$10,000 minimum target monthly income in retirement (MTMIR) in today's dollars
$15,000 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
$25,624.62 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 20% Down Payment Lewisville, Texas Rental Property

Lewisville, TX
This Property is a Dynamic resuable template of a property that we can buy multiple copies of using Rules.
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
$366,066 property value and purchase price and it goes up at a rate of 3% per year.
20% of purchase price for down payment.
1% of purchase price in closing costs at time of purchase.
No seller concessions.
7% is the mortgage interest rate with a term of 360 month mortgage term.
$2,517.90 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.
1.976% of the value of the property each year is the assumed property taxes rate. Based on the initial value of $366,066 that's about $7,233.46 per year in property taxes at the start and it changes as the property value changes.
1.419% of the value of the property each year is the assumed property insurance rate. Based on the initial value of $366,066 that's about $5,194.48 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 Non-Owner-Occupant 20% Down Payment Lewisville, Texas Rental Properties

This Rule runs for the entire Scenario.
This Rule will buy another copy of the Dynamic (template property) Typical 20% Down Payment Lewisville, Texas Rental Property 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 $10,000 Inflation Adjusted.
Assuming a tax rate of 20% on your paycheck.
Net paycheck (after taxes) is $8,000 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 $7,000 Inflation Adjusted per month.

Significant Events

These are the Significant Events for this Scenario.

Month 89 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 187 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 299 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 414 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 449 Paid Off Mortgage
Month 479 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 547 Paid Off Mortgage
Month 547 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 621 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 659 Paid Off Mortgage
Month 659 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 731 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 774 Paid Off Mortgage
Month 774 Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
Month 800 Achieved Financial Independence Goal
Month 839 Paid Off Mortgage
Month 907 Paid Off Mortgage
Month 908 Achieved Ideal Financial Independence Goal
Month 981 Paid Off Mortgage
Month 1019 Paid Off Mortgage
Month 1091 Paid Off Mortgage
Month 1128 Achieved 2 X Ideal Financial Independence Goal
Month 1134 Paid Off Mortgage