20% Down For Rentals Best Idea?

[Alexander Parada]

Hello Guys been listening to all these great stories by BPP! Have some questions for you guys when buying a home with 20% down as a investment is this only a 30 year play until mortgage is paid off? How can you generate profit from this strategy quicker? Im trying to make moves fast enough to be able to retire over the next ten years. I have big RE goals for 2017!

[Lee Ripma]

You want cash flow, so I guess your "problem" is that you don't want to put 20% down (really it's 25% unless it's SFH) on lots of properties to get that cash flow. Let's say that you want to have 10k a month in cash flow in 10 years and you're buying SFH. Each one you buy gets you 200/mo in cash flow BUT it also takes 20k to close so 20k per 200/mo per door. In that scenario you're going to need to 1M to put down to get your cash flow. Is that the sort of problem you're talking about?