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Updated over 9 years ago, 08/01/2015
Reaching $100,000 per year CASH FLOW
As with most of us investors, one of our big milestones would be to reach a passive income cash flow of a cool $100,000 a year.
Only being on my first duplex and on the close verge of purchasing my next 2-4 unit MF, I'm wondering the timeframe of this goal is.
What are some unforeseen challenges, road blocks, and obstacles a newer investor can't see as their starting up that will get in the way of this goal? It seems to me as long as you can put yourself into properties that can cash flow ~$10,000/year and acquire ten of them, you'll be at your ultimate goal. I understand that $10k/year deals are not easy to find.
A typical time frame/strategy would be the following:
-1 property / year over the next 10 years
-minimum cash flow $10k/year
-finance each property with as low of down payment as possible, leverage as much as possible
From listening to hundreds of podcasts now and reading lots, I'm gathering that most people are not in properties that cash flow $10k/year. More so, it seems that a typical investment property, let's use duplex as an example, would cash flow only $300/mnth, or $3600/year. With this logic, you'd need around 27 duplexes to make this happen.
Is it unrealistic to use the $10k/year cash flow logic with 10 total houses, or has this worked for people?
How did you get to your $100,000/year cash flow?