 Quote:
Originally Posted by Dreaming 2010
The gross rental is $79,200.00. I was thinking of taking $60,000.00 per year and leaving the rest to cover property taxes, vacancies and repairs. The duplexes are fairly new. Have not had much turnover, and my husband is able to take care of minor repairs.
I have gone out on the FIREcal calculator and am not sure of where rental income comes in.
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25% for expenses is a commonly used rule of thumb for residential rental property expenses (provided you arent paying gas or electric) so $60k/yr in income to you isnt unrealistic (and it is inflation protected, well kinda).
and it is true that FIRECalc doesnt work so well with rental property. the way you have to include rental income in FIRECalc is by making it look like a pension and since rental income should keep up with inflation, it will be COLAed.
Quote:
Originally Posted by Dreaming 2010
I have looked at our actual income and we do bring into our home $85,000 take home pay.
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I think I need to sit down and do a monthly budget for such things as food, eating out, etc. We have been too busy to vacation much and plan to do more in retirement so I guess I need to figure some things out.
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yes, figuring out your expenses is key (just like when you buy rental property)
Quote:
Originally Posted by Dreaming 2010
I have a revised plan so tell me what you think.
I think we could just take out $4000.00 per month from our rental and draw $3000.00 per month for 68 months from a $204,000.00 money market account when I turn 59 1/2 August 2, 2016. We would close our business December 31, 2010.
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no point in doing a revised income plan before you figure out your expenses
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