Question about using Case Study Spreadsheet (multi-family rental scenario)

[astralweeks]

Hi everyone,

I've been plugging numbers into the Google Spreadsheet, trying to figure out whether it would be worth it to buy a 2-family or 3-family vs. a single family fixer-upper in Boston (VHCOL, but we'd be buying through NACA: below-market interest rates and no PMI).  Since these are all hypothetical mortgage/tax/rent/expense scenarios, I'm looking for some advice:

• What would be a ballpark monthly estimate for "real rental expenses" for an owner-occupied 2-fam (1 rental unit) and owner-occupied 3-fam (2 rental units)?

• What would be a ballpark monthly "rental depreciation expense" estimate?

• Does the "Time to FIRE?" calculation factor in that you'd continue rental income once the mortgage is paid off?

The thing is, whatever I'm doing with the numbers now, it seems to be coming out virtually a wash.  Could that possibly be right?  (If so, to hell with landlording...)

Thanks for any help you can provide!
Nicole

[MDM]

Have you checked the sticky threads in http://forum.mrmoneymustache.com/real-estate-and-landlording/?

[MDM]

• Does the "Time to FIRE?" calculation factor in that you'd continue rental income once the mortgage is paid off?

No, not automatically.

You might be better served to used one of the more complex retirement estimators (e.g., see Best and/or Recommended Retirement Calculator - Bogleheads.org) for that situation.

Within the confines of the case study spreadsheet, you could take your rough estimate of net rental income and add that to the "Extra income after RE (pension, SS, etc.)" in cell B144.

[astralweeks]

Thanks everybody!  I'll check out the boggleheads calculator and the sticky threads and report back.  I've done some searching but sometimes the search function doesn't turn up much with my key terms.  Probably should just start with the stickies.

(Sorry for the delay -- I thought I was signed up to get email notifications for replies.)