Increasing property value toward a reverse mortgage


My client has a farm that is currently rented out and bringing in a yearly amount of $13K. I've put that in cash infusions.

I'm now trying to model the value of the piece of property and its increasing value which could, at some point possibly be turned into a reverse mortgage. 

How would I enter that in the software?


Enter the farm value as a Cash Infusion. 

The current value into Value. 

Duration is 1 for a one time sale.
The Start Age would be the age you might sell the property. 

The growth rates would be the increasing value of the real estate say 3%.  Set both growth rates. 

Tax rate would be if you owe taxes when it is sold.
Final column would probably be Taxable.

I would suggest you run your plan WITHOUT the property included.  See if you run out of money.
If you DO run it, say at age 80 then set the property sale Start Age to be age 80 to pick up where you left off.

If you prefer to do a reverse mortgage, you would need a reverse mortgage illustration showing how much you can pull out and again enter it at age that you would start pulling from the mortgage.  BUT IF YOU DO IT THIS WAY, then do not also enter the property as an investment.

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