Strategy to Prevent Over-Leveraging

[Devin Hightower]

Hello everyone!

I currently have one rental property in addition to my primary residence. I'm trying to be deliberate with my efforts to acquire rental properties without exposing myself to more risk than I can handle should the market turn. The idea I'm thinking of pursuing is to purchase two more rental properties, giving me 4 total mortgages, then rolling all the cash flow plus money from my job into one property at a time to pay them off. Each time I pay a property off, I'll buy a new one, giving me 4 mortgages at any given time, but snowballing the cashflow to increase the rate at which I'm paying them off. I would also like to flip houses in between acquiring properties, using the profits to pay off properties faster. My two goals are to get $12k per month in cash flow, then to build to $20 million in assets while protecting myself from a market crash. My wife and I both have decent paying jobs at this point, so this is really a long term plan that I expect to start slow, and I don't plan on surviving off the cash flow in the near future, just reinvesting it. Thoughts on this strategy?