How is $100/month Profit Good?

[Dan Brindley]

I'm totally new to Real Estate Investing. But after reading so many times that $100 a month profit is the goal, I'm left wondering how can this be good? By my estimation I'd need 40-50 houses to make a decent living. I know I'm probably totally missing something, so can someone explain this to me. And how can someone get to own that many homes? And how long would this take? Just keep refinancing the previous loan? I would lose my head trying to keep track of that many homes even with a property management company!

[J Scott]

It's only $100/month until your tenants pay off your mortgage, at which point it could be $500/month, $1000/month or even much more.

Many long-term investors buy several properties that have just a little cash-flow (again, about $100 or $200 per month), and then plan their retirement for when the properties are paid off -- 10, 15 or perhaps 30 years in the future, depending on how they structure and amortize their loans.

If you have 10 houses generating $1000 per month in 15 years, that can replace a typical corporate salary.