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Updated over 5 years ago,
the math doesn't add up, what am I missing?
We're in the process of learning everything we need to know before starting to invest but I feel i'm missing something here with the numbers game. I'm looking for lasting, generational wealth by building a portfolio. let's take some easy numbers to show you what i'm talking about...and so someone can tell me what i'm missing here.
Bought house $100,000
Mortgage payment is $800
Rent Charged is $1,400
(minus the 50% rule, the profit is $300)
so the cash flow would be $3,600/year on that one property.
after years of working hard i've acquired 25 properties., all with about the same cashflow. That leaves me making 90K.
90K is a great salary, with those numbers it doesn't seem like the vehicle for lasting generational wealth that i expected. Am I missing something?