Own 2 properties outright

[Nicholas Daniels]

Hey BP!

My current goal is to become a millionaire by 30! I’m currently 20, meaning I have ~10 perfectly good years. I’ll be graduating college next year debt free. I should make ~$60k/yr if I bust my ***.

My main goal is to have 2 houses paid off. I don’t want to leverage my butt off, I like the Dave Ramsey style and simplistic gameplay. I’m set on single family homes, those are most popular in my area and I might raise a family in one later on.

My current plan would be to buy a single family 3 bedroom 2 bathroom house ~200k. I could rent both rooms for ~600 each and the mortgage property tax, insurance etc would be ~$1050/mo. I’d manage the place myself. I’d put 20% down = 40k.

If I dumped an extra $1200 a month into the property that’d be $2200/mo. Plus the $1200/mo rent that would be $3400/mo total going into the mortgage. If I owed $160,000 I’d be mortgage free in ~4 years. $160,000/$3400= 47/12 = 3.9.

I could buy another house with the same specs, rent it and continue to live in this house. Dumping all money into paying off the other house. The second house would be owned free in ~3.5 years if I pay aggressively.

Each house should rent for $1500/mo when rented to one individual, and have expenses ~350/mo. Meaning each house would cash flow me 1150/mo each, 2300/mo each, or 27,600/yr.

I was wondering what you guys think of this goal. The houses should be worth 250k each which would be half of my millionaire goal. (I also have some other ideas to close the gap.

Is there any other ways I could get there quicker or a better strategy?

[Account Closed]

Originally posted by @Nicholas Daniels:

@Eric C. My area doesn’t have hardly any duplex, triplex or fourplex. It’s a fairly expensive area.

Fair enough, but keep looking for other ways. So do the SFR and house hack with roommates but save the money, don't use your money to pay the loan down. And if you can buy a house for 200,000 I'd venture to say you are in a fairly normal cost of living area. While there may not be multi families around I'd still hit up a realtor to get a professionals opinion.

And just curious, why a million?  What’s the “why” behind it?  Sadly a million is just a number, and you’ll hit it as a net worth number and be sadly super unsatisfied if that’s your only goal is to hit “a number”