How would you build up to $50k/yr in cashflow in 10 years?

[Zach Simpson]

I'm 24 now. Before I turn 35, our family's goal is to have $50k a year in cashflow from buy and hold real estate.

I'm not asking for you to make me a step by step plan. I'm more so curious of what your individual strategy would be.

Where would you invest? What would you invest in? How much money are you using to get there? What's your schedule look like?

Thanks so much in advance. I greatly appreciate so many of you sharing your knowledge and experience.

[Mike Mocek]

Hey @Zach Simpson This is a great question, and an even better goal!  I think it just depends on where you are looking, what type of properties you want to invest in etc.  I broke down the $50,000 by month, which is $4,166.67 a month in income.  If I take that and divide it amongst the average rental home ($700), that is roughly 6 properties you would need to gather on a yearly basis, this is extremely doable in Toledo however, if you go somewhere else, lets say California, that may only be 2 properties.

I own 4 properties in Tampa, FL, Each unit brings in $1,900 to $2,100 a month in rent.  Each house is a new build, so there is a lot going on with them however, these two houses would meet what you would need to increase and a great start (For example).

Some of the questions you should be asking yourself would be, where do YOU want to invest?  Also need to consider Management Fees, Maintenance Costs, Insurance costs etc.  In Toledo, the average rental is around $25,000 to $30,000 (More or less depending on the neighborhood).  A yearly insurance number is around $450 a month, with a 10% maintenance, so after everything is said and done, your cash flow can be roughly $522.50 per property.  It really does depend on where you go, what you want, and what kind of financing and funds you are working with :)