My Plan - Does it make sense?

[Trey Fischer]

I'm thinking about using a retirement account to buy 3 properties out right and then use the income to buy new properties as I build up cash reserves.  I estimate if I buy properties around 120K, I could have about 6 paid for properties in 8 years.  Cash flowing about 70 k a year.   Anything wrong with this plan?

Thanks for any feedback

[Trey Fischer]

@Jack Medford just estimating about 1200 a month and using a management company at 8 to 10% monthly rents.

[Jack Medford]

@Trey Fischer How much have you estimated in Net Income from these 3 properties you are buying outright? It is hard to know how accurate your plan is, without knowing the rental market in your local area. Also, are you planning to use management for these properties, or managing yourself?

[Trey Fischer]

@Jack Medford just estimating about 1200 a month and using a management company at 8 to 10% monthly rents.

[Jack Medford]

Are you also accounting for vacancies and maintenance/CapEx? Insurance and taxes will also hit your net income.

[Trey Fischer]

@Jack Medford yeah, my numbers are off. Taxes eat a lot of the cash flow