Scenario 1 - Accelerated Home Equity Growth
Step 1: Upgrade Warmlands Ave- New Master Bath
- New floor downstairs throughout
- Refinish kitchen cabinets
- New Exterior paint
- Replacement windows
Step 2: Sell Eden2
Sale price $625,000 NZD
Proceeds after expenses $275,000 USD
Step 3: Sell Warmlands Ave
- Sell for $850,000
Step 4: Purchase next level local property (example 2359 Elevado)
$900,000 purchase price
$350,000 cash from Warmlands Sale
$155,000 from Eden 2
$400,000 mortgage
Keep mortgage payments similar to now
$475,000 equity
Appreciation on a $900,000 home is approx $63,000 per year
Use remaining funds to upgrade new home to maximise appreciation
Million dollar home in 2 years rather than 5 years for Warmlands Ave
Mortgage tax deduction approx $7,000
Business use of the home approx $1500
$225,000 remaining in bank for investment or stock trading
Scenario 2 - Investment Only
Step 1: Sell Eden 2Proceeds $250,000
Step 2: Buy Florida Resort Home at Encore
Close to Disney, golf, water park
$600,000 budget fully furnished
$150,000 deposit
$450,000 mortgage
$500 per night rental
$3,500 per week
$180,000 per year
Occupancy 50% (seasonal)
$90,000 income per year
$5,000 per month free cash flow
Savings, mortgage paydown, reinvest, renovate Warmlands
Buy Arroyo Vista Condo in Murrieta
Commuter friendly affordable rental
$360,000 budget fully furnished
$90,000 deposit
$270,000 mortgage
$2000 a month rental with fixed lease
$24,000 per year
Occupancy 95%
Scenario Three - Uplevel using Investment Cashflow
Step 1: Sell Eden 2Proceeds $250,000
Step 2: Buy Florida Resort Home at Encore
Close to Disney, golf, water park
$600,000 budget fully furnished
$150,000 deposit
$450,000 mortgage
$500 per night rental
$3,500 per week
$180,000 per year
Occupancy 50% (seasonal)
$90,000 income per year
Step 3: Renovate Warmlands to maximize sale price
Direct investment cashflow into renovations
Step 4: Purchase next level local property (example 2359 Elevado)
$900,000 purchase price
$350,000 cash from Warmlands Sale
$50,000 remainder of cash from Eden 2 sale after Warmlands renovations
$450,000 mortgage
$450,000 equityUse cashflow from resort rental for higher mortgage payments
Use cashflow from resort rental for renovations and updates to increase value
Timeframe = 5 years
Scenario Four - Mallorca Modern Development
Step 1: Sell Eden 2Proceeds $250,000
Step 2: Buy Florida Resort Home at Encore
Close to Disney, golf, water park
$600,000 budget fully furnished
$150,000 deposit
$450,000 mortgage
$500 per night rental
$3,500 per week
$180,000 per year
Occupancy 50% (seasonal)
$90,000 income per year
Step 5:Build Mallorca Modern Home in Vista or Bonsall
