Investment Calculator?

Question

Remember the book "The Millionaire Real Estate Investor"?

Remember when the author had a chart of the average number of properties you would have to own in a certain timeframe to net a million dollars a year? (The properties had assumptions as to rent and expenses)

My question is:

Is there an investment calculator out there that can provide this type of data?

Jon Holdman · Answer

Well, a good rental property will net you $100 a month in real cash flow.  That assumes you're using a property manager.  You can earn the PM's cut if you do that yourself.

$100 a month is $1200 a year.  That would take 834 doors to net a million a year.

Pretty sure that book didn't discuss netting $1M in rental income.  IIRC it discussed having a $1M net worth based on mortgage paydown, appreciation, and rental income.   There is an old thread on this topic.

If you're looking for a spreadsheet, its not too complicated to set this up.  I had constructed something during that old discussion, but I doubt I can locate it. Describe what you're thinking and I'll slap it together on google docs.

Account Closed · Answer

Are you meaning software or physical functioning calculator?

I'm not sure about the whole "million dollar real estate investor" thing but I can recommend getting familiar with a HP 12C (Gold) calculator. (check e-bay or craigslist) It functions on Reverse Polish Notation (RPN) and has been a great for the financial world. There's also a book on amazon that a guy wrote specially for the HP 12C and RE investment. I just got it in the mail and can't recommend it at this point but will be checking it out as early as today to check his work.

Hope this helps.

E. Jacobs · Answer

I may be wrong, but I believe that million dollars is referring to net worth, NOT cash flow.

Tony Thompson · Answer

I checked out the old thread and yes they discuss in the book about achieving 1M net worth.  In the same book it talks about achieving 1M annual cashflow.  The cashflow is what I am referring to.

Tony Thompson · Answer

In the book it explains something along the same lines... that if you were strictly buying properties without pulling out equity from other investments, you could net a million annnual cashflow if you bought [x] rentals per year for [x] amount of years.

I can't remember the figures... [x]'s.

However, the number of rentals you needed to buy to net a million is SIGNIFICANTLY reduced IF you pulled equity out of other investments to purchase new investments.

It was something like if you buy 1.5 properties a year for 40 years, you would be making 1M net by the end of 40 years, assuming that you pulled equity out of each property to help pay the next.

Didn't mean to complicate this.  Just am looking to have some fun with numbers.  Aka number porn :wink:

Nick J. · Answer

I think Jon is on point. I've got a good friend that has close to 500 properties in NM and a good size PM company and construction company. He currently nets over a 1mill a year. It's taken him 20yrs to get to where he is but he's planning on doubling his inventory over the next 2 yrs so he and wife (kids are grown) can live out their days on a beach somewhere on an island.

Although I haven't read that book I would guess that its intention is to say "net worth" not actually "net" in your bank account

Investment Calculator?

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