Net Worth vs. Cash Flow

[Micah Redden]

Hello,

I have a question about long term strategy. I currently have several rental properties that I own and that generate great cash flow. However, I was able to purchase these when the market was more depressed than it is now and those deals are difficult to find. In order to cash flow on a SFR in my area I need to have a total acquisition cost of no more than 70% ARV; these deals are increasingly rare. I do have access to more deals that I can acquire at no more than 80% ARV which would allow me to BRRR in a 12 month period. But, I can't cash flow the property on a monthly basis.

So here is my question:

If I can buy 5-6 properties a year with my current cash position and then use the BRRR principle I can accumulate about $100K a year in a net worth position and technically have none of my personal money involved. Do this for several years and you see the long term growth of net worth. However you can't retire solely on net worth, you need cash flow from these properties. Does the cash flow kick in at some point later? Am I missing something in this scenario?