Ep 8 Advanced: Norm and Norma Buy 10 20% Down Payment Rental Properties

Advanced Real Estate Financial Planner™ Podcast

Welcome to the Advanced Real Estate Financial Planner™ Podcast. I am your host, James Orr. This is the advanced analysis of Episode 8.

In Episode 8, Norm and Norma decided to buy 10 20% down payment rental properties while they remained renters themselves.

In the simple analysis we used fixed assumptions for property price appreciation, rent appreciation, stock market rate of return, inflation rate and mortgage interest rates.

In the real world, properties don’t always go up 3% per year. Nor do rents go up exactly 3% per year every year.

Mortgage interest rates change daily... so they’re not fixed at the same rate while we are saving up for down payments.

And, the stock market does not always up go at 8% per year. The market is up and down at times.

For the advanced analysis we’re using random price and rent appreciation rates, random stock market rates of return, a random inflation rate and random mortgage interest rates. This better reflects what the future might hold.

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