Kathy Kettke $200K in 10 houses -> $70K/year free cashflow

[Jonathan Benjamin]

Hi, new aspiring RE investor here.  I have cash to invest, but at this stage I'm mostly investing in education so that I don't make some dumb mistakes.  

Recently Kathy Fettke has been taking a lot of interviews where she talks about a strategy of taking $200,000 in cash, using it to buy 10 SFR properties that cashflow ~$300/each per month after financing costs, with the result being that after 10 years you'll have fully paid off the first house and will be generating total free cashflow of around $70K/year.

I've run some numbers of this strategy and the assumptions seems like it requires a cap rate of 8% on the houses, annual appreciation of 4% on the properties, a mortgage rate of 4%, with 20% down on each of a $100K SFR. Sound about right? Seems like the cap rate AND the appreciation rate are awfully ambitious for most markets.

Any thoughts on this? Does it effectively require BRRRR'ing each property to hit the target appreciation, or can this be done with more turnkey properties in any markets? Or is there some aspect of this build-up that I'm missing? Would love to discuss, and feel free to poke holes in any of the assumptions I have about.