Live and Flips Math.

[Alan Davidson]

I work a 9-5 job.  The job pays the bills.  Not terribly happy with it but its not a bad job.  Its a job. 

I contribute to a 401k as does my wife in her job.  I've assumed an 8% rate of return on a 100% stock portfolio.  Plus, both of our jobs give us 5% matching.  So that brings us up to an average of 13% annual rate of return.

But I was wondering how the math stacked up if we sold our home and moved into a duplex/triplex.  We would live in one side.  Fix up the other.  Rent it out.  Then fix up our side.  Pay it off.  Rent it out.  Rinse and repeat on another duplex.  Continue to do this until we owned numerous properties.  Not a big debt guy so I would rather pay these off as we go rather than leverage them.

I believe I can have a better lifestyle doing this. But lifestyle aside, can I beat my 13% ROI with rental properties? I know there are a lot of variabilities with real estate. But generally speaking.