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Old 05-25-2012, 10:48 PM   #21
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Are you a Honohead?
Possibly the honohead himself, "gone traveling"...
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greaT question
Old 05-25-2012, 11:52 PM   #22
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greaT question

Congratulations on succesfull real estate diversification! But , I have found that most people on this forum don't really know much about this area. I have been a real estate broker, mortgage broker and real estate investor and property manager for many years. My simple rule of thumb is to project 60% of projected income as net. My actual net over the past 5 years has been closer to 72%- I will use 50% as my number for any retirement income projections. And that should be fine. Good Luck
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Old 05-26-2012, 02:45 AM   #23
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This is exactly the way I would do it (simulation using an annuity). I would simply spend less money in years with higher vacancy rates.
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When I use FIREcalc to run a retirement scenario, I plug in $60,000 as an inflation-adjusted annuity. But real estate income is probably less dependable than a pension. Our real estate portfolio is fairly well-diversified: 10 high quality units in a two different states, and many different (all stable) neighborhoods. The vacancy rate so far has been under 5%, but I only have a couple of years of data.
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Old 05-26-2012, 02:44 PM   #24
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Congratulations on succesfull real estate diversification! But , I have found that most people on this forum don't really know much about this area. I have been a real estate broker, mortgage broker and real estate investor and property manager for many years. My simple rule of thumb is to project 60% of projected income as net. My actual net over the past 5 years has been closer to 72%- I will use 50% as my number for any retirement income projections. And that should be fine. Good Luck
That really makes sense. Thanks so much! I'm going to use the 50% of gross rents figure in the COLA'd annuity line. This puts me a little short of my goal, which is what my gut says anyway.
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Old 05-28-2012, 06:25 AM   #25
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$400,000 condo for $35,000 with $2000 down & a 15 yr mortgage
wow .... don't remember those numbers ... and now it's worth $800k (in THIS market) ?!?!

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Old 05-28-2012, 09:07 AM   #26
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Of course when you look at my $35,000 purchase financed at 9% 15 year $33,000 = $334.71 X 180 = $60,248 Of course I collected roughly $130,800 (thank you blessed tenants) over those 15 years and have not paid another mortgage dollar for the last 15 years but have collected increasing market rents since netting about $180,000. And I could sell TODAY for $400,000. Let's see 180K net rents last 15 years plus 130,800 rents first 15 years plus $400K value is $710,800 minus $60K mortgage payments gives me $650,000 minus $50K misc gives me $600,000 on a $2,000 investment!!! But why would I sell when my good tenant has been in there for going on 8 years and I'm appreciating at 9% ($36,000+) a year. AND, I have a reasonably firm "Your Poop, Your Problem" policy (YPYPP)Calmloki take note although I realize you own all the pipes so maybe not so easy to enforce. And I'm doing this 3500 miles away! YMMV
oops, my bad ... found this from a May 2008 post. I'ld get an appraisal before I counted on 800k in THIS market thou ... just saying ....
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