$500,000 Passive Income Per Year With Rental Properties?

[Brandon Low]

Hello,

This is my first post, and am still very much in the learning/education phase of my REI journey. (So please dont be too hard on me!)

I'm 26 and my goal is to make $500,000 a year in passive income by acquiring rental properties. I want to reach this goal in 20 years. I've done some rough estimations using the following criteria.

Rentals Acquired Each Year: 5

Avg. Cashflow per property per month: $350

Avg. Purchase Price: $100,000

Down Payment on each house: 20%

If I were able to stick to this plan, I would be making $441,000 a year with 110 rental properties by the year 2036. That's AWESOME except for one thing: I would be in debt around $8 million. 

Here is my question:

Even though I am making $441,000 a year, it would take 16+ years to pay off all my debt even if I devoted 100% of the income towards paying off the mortgage. The thing about rental properties that attracts me is the "worry-free" mindset that comes with it. However, due to the massive leverage that is being used, and thus huge debt, it doesn't seem like such a great option anymore. Thoughts?