Complete the statement below I want to retire at age ______ This is in ______ years I want to live until age ______ And I will be Retired for ______ Years (Years Retired) When I'm retired my annual expenses will be $_______________ (Expenses) Right now I have $__________ in my retirement account (Current Retirement Savings) |
Total Needed = Expenses x Years Retired x 1.25 percent (tax)
Shortfall = Total Needed - Current Retirement Savings
Yearly Savings Shortfall / years retired
Monthly Savings = Yearly Savings / 12 months
Assumptions
Avg 2 Family Home Cashflows $500/month net
Downpayment $25k to Hold or Rehab for $30,000 profit
Formula
Monthly Expenses = Yearly Expenses / 12
Units Needed = Monthly Expenses / Cashflow
Capital Needed = 25k x Units Needed
Rehabs to complete = Capital needed / $30,000
Total Rehabs / 5 years
Every 20 offers = 1 Deal Rehabs x offers = amount of offers
Example (always round up)
Yearly Expenses $60,000
Monthly Expenses $5,000
Cashflow $500
Units needed = Monthly Expenses / Cashflow
Units needed = 10 Properties
Capital needed $25k x 10 = $250k
$250k/30,000 = 9 Rehabs
9 Rehabs/5 years = 2 rehabs per year
If you can rehab 2 properties per year,
you can retire in 5 years with an income of $60,000/year
Difference = Shortfall / Capital Needed
~ Keeping Dreams Alive ~
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