Strategy: Build A Passive Income By Paying Off Mortgages

[Arturo Fernandez]

Hello,

Mortgages take a big chunk of cash flow out of holding a rental property. Assume that each year an investor acquired a triplex or quad. Assume that the cash flow produces 100-200 after mortgage is paid and operating costs are allocated. Assume that the properties acquire equity and can be refinanced to pull out more money for investing.

If after 6 years all properties have cumulatively appreciated in value and cash flow has been set aside in savings, would it possible to either pay off one triplex/quad or simply buy one for cash so that no mortgage exists?

Can this process be repeated until 3-4 cash units have been purchased?

 If this process is repeated a few times couldn't an investor sell the other properties that carry mortgages after he has enough multi family units to support his living expenses?

Thoughts and feedback appreciated!

Arturo