Cash Flow and Financial Freedom

[Elsa M.]

Hi BP community, I'm seeking everyone's advice. My goal is to generate $6,000 a month in cash flow in 10 years so I could have the option of quitting my job if I wanted to. I'm hoping to purchase my first rental property this year, I have enough for a down payment on a 2 flat (FHA loan) plus a couple thousand for reserves, I plan to house hack.

I have a W2 job, making 50-60k a year. I'm am able to save 1,000 a month.  I do not have any loans nor debt, my car is paid off.  I am currently renting, I do not own a home and I live in the Chicagoland area.  My goal is to generate 6k within 10 years with the LEAST amount of properties!  Do you guys think this is doable given that I would need to put down 20% on these rental properties? 

Any suggestions? How would you guys go about it? Or would you recommend single family homes because the down payment may be less than a multifamily?

Thanks for taking the time to help me out everyone!

[Wil Reichard]

Step 1: Find a good market. 

What I started to do was purchase a home with an FHA loan. (3.5%) down. I live in the house for a year, then move and acquire another home using the FHA. Obviously these have to be great deals at great prices because most rental numbers can work with 80 LTV, but my houses are at 97.3 LTV so it requires more cashflow or a better DSCR. I act as if each home I acquire for myself with the FHA will work numbers wise on a rental.

Hope this helps! 

Also, dig DEEP into BP podcasts and books in general. They'll give you more information than any one person could!