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05-25-2012, 09:48 PM
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#21
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,262
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Possibly the honohead himself, "gone traveling"...
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The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
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05-25-2012, 10:52 PM
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#22
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Dryer sheet aficionado
Join Date: May 2006
Posts: 48
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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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05-26-2012, 01:45 AM
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#23
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 3,511
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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.
 Quote:
Originally Posted by sunsnow
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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Very conservative with investments. Not ER'd yet, 48 years old, about 98-99% in cash, CDs, munis, sizeable nest egg, WR < 3.5%, pensions, annuities, no debt, and 47-year planning horizon. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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05-26-2012, 01:44 PM
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#24
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Recycles dryer sheets
Join Date: Oct 2011
Location: Park City
Posts: 51
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Quote:
Originally Posted by blanston
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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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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05-28-2012, 05:25 AM
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#25
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,187
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Quote:
$400,000 condo for $35,000 with $2000 down & a 15 yr mortgage
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wow .... don't remember those numbers ... and now it's worth $800k (in THIS market) ?!?!
(Welcome back Hono ... I miss you)
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FIRE'd since 2005
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05-28-2012, 08:07 AM
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#26
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,187
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Quote:
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
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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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FIRE'd since 2005
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