$100k in 4 years?

[Samuel Waters]

If you are a cash flow investor what would be the best way for me to get to $100k/yr in income in just 4 years? I'm asking for folks that have actually achieved similar results to reply. If you haven't achieved similar results I welcome your comments as well but what I'm really looking for is social proof that my goal is realistic. Thanks!

[Jake Hartnett]

Caveat: I have not done this, I have only done one deal, but this is basically my plan over the next few years.

First off, this is a pretty aggressive timeline.

Second, I assuming you want passive income and are not interested in a wholesaling or flipping business.

Third, I assume you are willing to put in a ton of work in the next four years to get to a passive position, because I don't know another way to do it.

I would BRRRR.

I don't see a better way to gain enough equity to own that many properties.

In my area a good duplex can cash flow $600/month with 75% LTV financing. There is a local hard money lender that offers 70% Loan to ARV financing.

So if you buy a rundown duplex for $100,000, put $40,000 in rehab and refinance it with a $200,000 ARV and a $10,000 down payment you have $600/month. (72% cash on cash)

$600x12months=$7,200/year

$100,000/$7,200=14 duplexes

14/4years=3.5 BRRRRs/year

Maybe you could do 2 4-plexes/year, or just one huge apartment building that takes 4 years. I don't know.

14 $200,000 duplexes at 75% LTV is $700,000 in equity that you got for $140,000. I don't know a better way to get $700,000 for down payments.

Looking forward to hearing other strategies.