1. Account for vacancy; increase cash flow by 10% gross(what if you have never/rarely had a vacancy in years of landlordship?).-
- Use your own experience, if you have a low vacancy rate, plan on it being a bit higher in the future to be on the safe side but depends on what/where you rent. 1 Bed apts in a war zone will give you very high turn over for the most part. 3 bedroom + SFRs in a good school system will have astoundingly low turn over.
2. Increase stache to cover a certain amount per unit and emergency fund for yourself. Perhaps 20% PP for leveraged units, 8-10% paid in full units, 2 years of personal expenses. Not sure. Would this just be ridiculous if you had 10+ units? Do you adjust these numbers the more units you have?
- Yes if you have one house rented you are in a very different position than if you have 30 rented. Adjust accordingly.
3. increase cash flow for expected additional costs in retirement (kids college/young adulthood, business startup, more active charity). This seems to be a wild number and just depends on the individual.
- Plan on your future cash flow being about what it is in current dollars. Rent increases have smoked inflation but leaving rents alone for good tenants can be cost effective also, turnover costs money.
