Retirement with 3 houses paid off

[Nicholas Daniels]

Hey guys, sorta new to BiggerPockets.

Was wondering: Let’s say I can live on ~$17,000-$20,000/yr

Let’s say I purchase a $100,000 property and I knock out the mortgage in two years. Let’s say this property nets me $650/mo (this assumes $150 property tax, $50 insurance and I’m assuming 5% repairs, 5% CAPex, 7% vacancy and the 10% property management fee.

Let’s say I repeat the process again and purchase a second property. I purchase another single family $100,000, pay off the mortgage in two years. Now I’m negging $1300/mo.

Then lastly, I purchase a third property for $100,000, and I pay it off in 1.5 years. Now I’m earning ~$1,50/mo or $23,400/yr.

Have I not just retired in 5.5 years? I own 3 rentals free and clear and earn more than enough to cover all living expenses.

[Pat L.]

Originally posted by @Clifford Paul:

Technically you could retire but can you really live on $20k a year? What about health insurance? Personally I couldn't do it but I have a $20k a year cigar and scotch habit and like very expensive sports cars. 

 Reminds me of my gentleman Jaguar salesman friend who, after a down payment on a vehicle, he apologized to the 'client' that the payments rounded to $980/month. "That's OK" said the 'client' "I spend at least that on cigars & bourbon". 

Now in our case (retired 22 years) I am convinced my wife spends $20k a year just on the grandkids, plus at least $30k a year on the 'whole family travel retreats'. But I do get an allowance if I do my chores!!!

$17-$20k/yr Good luck.