Goal setting: 10k$ per month in cash flow in 10 years

[Anirudh Reddy]

My scenario: I have 40k$ in cash right now. 10K$ in stocks. Me and wife both have W2 jobs. We both want to retire in 10 years from now with 10k$ in cash flow per month.

Goal: Buy SFH rental property and rent them out.

What I think I would be able to achieve with the cash I have: I can buy a 120k$ SFH in Memphis with 220$ in cash flow per month. I would have to do 25% downpayment for every SFH purchase of that value = 30,000$. For the sake of analysis, I assumed I would buy the property of this value over and over 1 for every year with 30,000$ in downpayment every single time. That would give me below cash flow through my first 10 years.

Year 1 – 2748$ (1 SFH)

Year 2 – 5580$ (2 SFH's)

Year 3 – 8907$ (3 SFH's)

Year 4 – 12537$ (4 SFH's)

Year 5 – 16478$ (5 SFH's)

Year 6 – 20742$ (6 SFH's)

Year 7 – 25337$ (7 SFH's)

Year 8 – 30275$ (8 SFH's)

Year 9 – 35565$ (9 SFH's)

Year 10 – 41219$ (10 SFH's)

41k$ per year would give me 3400$ per month which is nowhere close to my goal of 10k$ per month.

Question to the experienced folks! – What am I missing? With 30k$ in cash every year to invest, am I constrained to just 3400$ in cash flow after 10 years if I go ahead with long term rental and buying traditional SFH's without any other creative investing method involved? How can i tweak my math/investing approach to get to my goal of 10k$ per month cash flow?

[Jay Hinrichs]

where I personally have seen people be able to do this is by appreciation Not cash flow.. Cash flow is a holder why your asset appreciates.

then you 1031 into a bigger property and keep rolling up that way.. without any or meaningful appreciation and capturing that appreciation to move to bigger and better .. your numbers are correct. 

Other way i have seen folks do this is pay cash and have a 20 year to 30 year plan.. end up with 10 to 20 Nice quality paid for assets that will give your 10k a month goal.

Although I have to say 10k a month does not go very far unless you basically have very little to no debt as you age out and your now self employeed health insurance etc will take a big wack out of that 10k.  10 years from now 10k a month will be worth 7 to 8k maybe in todays dollars.