Discussion	Details	Subject1	Subject2
Variable Details

The Subjects
Subject 1 invests using financing. He buys a property whenever he gets 20% down plus the closing costs Subject 2 invests using cash. He buys a property whenever he gets the full purchase price plus closing costs.
Lifetime Subject Breakdown Headings (description)
Age:	The age of the investor. Begins at age 25, the year the investor graduates from college and begins working and investing. Ends at age 80. This can be adjusted below.
Wage Income:	The amount of wage income that the investor earns each year working at their profession. This starts at 50k increases by 5% per year and stops at age 60 when they retire. This can be adjusted below.
Rental Cash Flow:	The amount of annual net-pretax cash flow from all current rental investments (rental income - rental expenses - vacancy loss - mortgage payments if applicable). The subscript percentage shows the return on investment (ROI) for the annual cash flow.This can be adjusted below by adjusting the rental income and rental expense percentages.
Rental Taxable Income:	The amount of rental income that is taxable after tax deductible mortgage interest, depreciation and expenses.
Rental Net After Tax Cash Flow:	The net post-tax value of the rental cash flows. Positive taxable rental income produces a lower value, and negative taxable rental income produces a higher post-tax income because of the tax expense or savings associated with the income. Basically, it is your net realizable cash flow of the rental. The subscript percentage shows the return on investment (ROI) for the annual post-tax cash flow.
Taxes:	Total taxes paid on all forms of income annually.
Household Budget:	The amount of money spent on personal expenses during the year (rent, gas, utilities, food, ect). This money is consumed and cannot be included in savings. This can be adjusted below.
Prop Purchase Out of Pocket:	The amount of money spent out of pocket to purchase a property in the specified year. The small subscript number indicates how many properties were purchased in the specific year.
Savings:	Total cash in savings at the end of the year. The savings interest rate can be modified below.
Cost of Rentals:	The cost of the specified rental from year to year. The rental values fluctuate from year to year on a 10 year cycle, sometimes falling and sometimes rising. Every rental purchased is essentially the same, but the market price changes overtime. This column reflects the change in market price. The subscript letter next to the price indicates the status of the market B = 4% increase year, d = 3% decrease year, n = flat or 1% increase year.
Outstanding Liability:	Total outstanding mortgages and lines of credit.
Net Worth:	Total networth of the investor (Total savings + Total value of Properties owned at todays market price - outstanding liabilities).

Investor Variables
Variable	Value	Description
Starting Age		The age at which the investor starts earning a salary and saving to invest.
Income Starting Point		The wage that the invester earns their first year of employment
Wage Increase Rate		The rate at which the investors wage increases each year (Express as a decimal do not use % sign)
Income Max		The wage maximum the investor can earn
Savings Interest Rate		The interest rate the investor will earn on his savings money
Household Budget %		The percentage of post tax money the investor will use on personal and household expenses before savings (Express as a decimal do not use % sign)
Household Budget Max		The maximum post tax dollar value that should be spent on household and budget items (expressed as a negative because it is money being spent)
Retirement Age		The age the investor plans to retire, by default 60, which is the age IRA's can be drawn on without penalty
Real Estate Purchase Variables
Stop Purchasing Age		The age at which the investor will stop purchasing real estate
Initial Cost of Rental		This is the starting point of the cost of the type of rental that the owner consistently wants to purchase
Appreciation Rate		The rate at which rental real estate will increase in value each year (Express as a decimal do not use % sign)
Financing Rate		The lending rate that mortgages will be based on (Express as a decimal do not use % sign)
Percent Down		The percent of total purchase price that a financing buyer, both Subject 1 and 3, will put down on a property at the initial purchase (Express as a decimal do not use % sign)
Escrow Cost		The percentage of the initial purchase price that will be added as closing costs (Express as a decimal do not use % sign)
Rental Income Rate		The ammount of annual gross rents produced by a single property calculated on the purchase price (Express as a decimal do not use % sign)
Rental Expense Rate		The ammount of annual expenses and costs associated with the rental calculated on the annual income (Express as a decimal do not use % sign)
Vacancy Loss Rate		The ammount of loss of income due to vacancy (Express as a decimal do not use % sign)