What is the fastest way to FI (passive income goal) using RE

[Sameer Kh]

Hello Fellow Bigger Pockets Friends,

I have been analyzing various models (already took action and bought investment property) to get to my freedom number i.e. monthly passive income goal to replace my expenses and maintain lifestyle. Before I took the plunge, I was all in stocks and with my new interest RE I am planning to shift more aggressively towards RE porfolio but still not sure on the long term outcome. 

My goal is to be at FI stage with 4% withdrawal rate in 10-12 years. I would prefer to do passive buy and holds as I have full time job so right now I don't have time for flips/wholesale. 

Here are few options I am considering:

1. Stocks: Continue investing in stocks and reach my goal in 13.5 (70-30 portfolio)

Upside: Simple and easy to do

Downside: unpredictable economy, not able to capitalize on tax benefits, missing out on higher growth

2. Buy and payoff rentals quickly: Buy 10 rentals and pay them off in 10 years (as per my calculation this would actually take 20 years instead of 10). Plus, it will not give me the same COC return as I would if I use leverage and let renters payoff mortgage balance.

Upside: Free and clear property, tax benefits, stable income

Downside: takes 20 years instead of 10, COC return is much lower,

3. Buy and hold using leverage: Buy 25 properties (2-3 each year for 10 years) and let renters payoff mortgage.

Upside: High COC return, tax benefits, stable income, mortgage interest deductions

Downside: not sure how I will continue to finance 25 buy and holds (I started with convention loan which stops at 6 properties), mortgage looming over my head for long term,

So I have a three part question:

1. Am I thinking this correctly?

2. What is the best strategy or technique from above or anywhere on BP or your experience to get me to my goal in 10 years?

3. How can I reach my goal much faster?

Thank you again

Best