Buy One Property a Year and Retire Early

Sounds simple enough. Buy one property a year until your cash flow exceeds your expenses and, voilà, you can afford to retire.

Dr. Peter Kim takes a close look at this advice and uses some straightforward numbers to make some basic but not unrealistic projections as to what this might look like in practice.

Ten years in, according to the model, you’d be in good shape. After 15 or 20 years, you’re looking like a regular real estate mogul!

Buy One Property a Year and Retire Early

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– $30,000 invested and you have your first rental property. Congrats! – Cash flow is $400 a month ($4,800/year). – At year-end, this $4,800 reduces Home #1’s loan to $65,200 (= $70,000 – $4,800).

Year 1

– $30,000 invested and you have your 2nd rental property. – 2 cash-flowing properties at $400/month results in $9,600 for the year. – At year-end, this $9,600 reduces Home #1’s loan to $55,600 (= $65,200 – $9,600).

Year 2

– $30,000 invested and you have your 3rd rental property. – 3 cash-flowing properties at $400/month results in $14,400 for the year. – At year-end, Home #1’s loan is at $41,200 (= $55,600 – $41,200).

Year 3

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