Need help with Real Estate folders data entry

1. Expenses tab, item #5: Is the growth percentage real growth over and above inflation rate?
2. Expenses tab, item #5: Should the "Number of Years" entry be consistent with the "Year Property Will Be Sold" on the General tab? If so, what should "Number of Years" entry be if "Year Property Will be Sold" is "Never"? If not, how should I interpret / populate the "Number of Years" field?

Suggestion: I'm renting out a Condo. It would be helpful if there were a "Condo Fees" expense category in the Item 1 dropdown.

Thanks in advance for your help.

Regards, Joe Fowler

Comments

joefowler49's picture

An additional question: How would I model renting out my 2nd home condominium for 10 years; then selling my free and clear primary residence and moving into my previously rented condominium?

Thanks. Joe

dan royer's picture

That particular "Grow" feature is growing either dollars or today's dollars depending on which you entered in number 4. A quick experiment entering "dollars" and then "today's dollars" and then grow will make it clear to you I think. You choose the number of years you want the expense to continue. Obviously it can't (won't let you) continue the expense past the sale date, but it will let you have an expense for just three years (for example) even if the sale date is never.

You can actually type in Condo Fee if you want for the category.

That last question is a bit more complicated. I would have to rework this here, but I believe the program requires you to keep a primary residence once you have it, even if that primary is being rented. Some people have "rented" for $1 per month to model things like you describe (sale of primary residence). But I think another option is to treat a Vacation home as your current residence and then sell it with first change of vacation home (enter zeros from purchase price of new vacation home); then in the Primary Home use First change of Primary home to indicate the move. That's probably a bit muddled. I can work that out if you need me to, but perhaps that will put you on the right track.

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