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Real Estate Investing Business Plan   2017-2022                             Updated 1-8-2017                                  Just The Facts

The following computation is a simplified investment plan to get an approximate NET yield of 23.845% from 2017-2022 utilizing an initial cash property investment of $65,000 with a average rental income of $700 a month.

The sample formula that is used contains real values for Real Estate, ROI and Rental Income. Tax and Insurance expense were also calculated. It has been spread over the 6 year received period from 12/31/2017 to 12/31/2022.The only calculation used from year to year is a annual compounding calculation. There are no future anticipated values or time adjustments. Real Estate is the only real $ hedge against inflation for everyone because of values.

The formula: Investment amount 65,000. at a 12.5% Net annual Yield = $66,773.62 - 12/31/2022 +

Property Appreciation on the 65,000 at a 7.5% Annual Value Yeild =      $35,314.60 - 12/31/2022 +

Re-Invest the Net Profit from the Rental Income at 5% Roth IRA =          $  8,151.53 - 12/31/2022 +

US Inflation Rate estimated at a 4% average (Cost of Money) =               $17,245.74 - 12/31/2022 -

Pre-Tax and Tax Deferred Yield 23.845%

Note: In the calculation your Social Security is considered as a off set to inflation after age 65.

At age 65 your ROTH IRA account balance will be $408,321

based on $458.33 a month contribution from your Rental Income for 30 years

You'll then be able to withdraw $25,297 annually for 30 years.

Inflation was 2.82% from 1984-2014, "30 years" or the total  inflation was 130.06%

$25,297 in 1984 is $57,197.83 in 2014 dollars.

So therefore your $25,297 in 2044 will be valued at about 50% of the purchasing power you have today declining to 25%.

The above value is considered level or $25,297 because of your additional Social Security Income.

In conclusion approximately 1,500,000. needed less 408,321 = 1,091,679. Net is needed from Real Estate Investments.

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PROPERTY INVESTMENT OF  $65,000 AT 12.5% NET ANNUAL YIELD (SECURED)
2015 $0.00 $0.00 $65,000.00
2016 $0.00 $8,125.00 $73,125.00
2017 $0.00 $9,140.63 $82,265.63
2018 $0.00 $10,283.20 $92,548.83
2019 $0.00 $11,568.60 $104,117.43
2020 $0.00 $13,014.68 $117,132.11
2021 $0.00 $14,641.51 $131,773.62
YIELD +$66,773.62
CNN Calculator: Age 35-65 with $65,000. Savings and a Family Income of $50,000 Annual at a 23% ROI
In 2017 Todays Dollars you need to have $760,603.00 to retire until age 92 with Social Security Benefits
In 2017 Todays Dollars at Age 65 Dollars base on the Plan you would or should have $897,448.00 or more
At a Savings Rate of 23% based on the presented plan you will have:
In 2046 Dollars you need to have + $1,500,000.00 to retire until age 92 with Social Security Benefits
In 2046 Dollars at Age 65 Dollars you would have or should have at a 23% Savings Yield + $1,800,000.00

US REAL ESTATE APPRECIATION FACTOR OF 7.5% (+) $35,314.60

2017 $0.00 $0.00 $65,000.00
2018 $0.00 $4,875.00 $69,875.00
2019 $0.00 $5,240.63 $75,115.63
2020 $0.00 $5,633.67 $80,749.30
2021 $0.00 $6,056.20 $86,805.50
2022 $0.00 $6,510.41 $93,315.91
2023 $0.00 $6,998.69 $100,314.60

 

YIELD + $35,314.60
US INFLATION AT 4% ANNUAL (-COST OF MONEY ANNUAL)
2017 $0.00 $0.00 $65,000.00
2018 $0.00 $2,600.00 $67,600.00
2019 $0.00 $2,704.00 $70,304.00
2020 $0.00 $2,812.16 $73,116.16
2021 $0.00 $2,924.65 $76,040.81
2022 $0.00 $3,041.63 $79,082.44
2023 $0.00 $3,163.30 $82,245.74
YIELD - $17,245.74
END RESULT YEAR 2021
$66,773.62 + RENTAL INCOME ROI FROM PROPERTY INVESTMENT OF $65,000
$35,314.60 +US ANNUAL REAL ESTATE APPRECIATION AT 7.5% NATIONAL AVERAGE
$17,245.74 - US ANNUAL INFLATION AT 4% (3%-4% AVERAGE IS NEEDED FOR GROWTH IN AMERICA)
$84,842.48 + PROFIT REALIZED YEAR 2021 FROM A $65,000 INVESTMENT 5 YEARS
REINVESTED THE NET PROFIT INTO A ROTH IRA @ 5% RATE OF RETURN FROM THE STOCK MARKET MUTUAL FUNDS
Today you need $750,000 to retire with Social Security Benefits for 27 years.
$5,500.00 ANNUAL FOR YEARS (TAX DEFERRED)
ROTH IRA VALUE  YEAR 2022 (6 YEARS)
$8,151.53+ Compound Interest monthly @ 5%
It is estimated that you will need approximately $742,000
Net Equity in your real estate holdings to retire.
 
ROTH IRA VALUE YEAR 2027 (10 YEARS)
$21,096.12+ Compound Interest Monthly @ 5%
It is estimated that you will need approximately $855,000
Net Equity in your real estate holdings to retire.
 
ROTH IRA VALUE YEAR 2034(17.5 YEARS)
$62,883.81+ Compound Interest Monthly @ 5%
It is estimated you will need approximately $950,000
Net Equity in your real estate holdings to retire.
 
ROTH IRA VALUE YEAR 2047 (30 YEARS)
$408,321+ Compound Interest Monthly now on the Declining Balance @ 5%
It is extimated you will need approximately $1,100,000
Net Equity in your real estate holdings to retire.
 
Effective ROI on entire Investment Plan  2017-2022
66,773.62+ Rental Income current year +12.5% Housing Rental Income/Expense ( IRA Investment Tax Deferred)
35,314.60+ Appreciation Factor Annual @ +7.5% Real Estate Owned (Tax Deferred)
17,245.74 - Inflation Factor 72 Months @ -4% <Dollar Value Loss>
  8,151.53 + IRA @ +5% (IRA Investment Tax Deferred)
92,994.01 + Totals
15,994.01 + Annual
65,000.00.....Investment Amount
23.845% NET ANNUAL over 72 months
RESI - Real Estate Secured Investment
____________________________
Average CD Rate As Of 7-14-2017
Product Rate Changes Daily~WSJ
 5 Year CD  Rate 1.44%  
 

 

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