Hi BP, I'm looking for some feedback about the strategy my mom and I are planning to use to get her monthly cash flow back into the black and help her eventually retire.
Background:
My stepdad recently passed away unexpectedly and as a result, my mom's monthly expenses are about $1K more than her monthly income. She lives in a condo she owns, which she could make about $150K profit on. She has about $65K in available capital as well.
Plan:
We're talking about getting a loan to buy a turnkey SFH in the Midwest, and then getting another loan to buy a second turnkey there as well a few months later if she's comfortable with how things have gone with the first.
If things continue to go well after the second, we'd sell her condo and rent her a place that would end up being about $500/month less. We'd then use the profits from the sale as down payments to purchase an additional 4-6 turnkey SFHs. I'd then like to go for an additional 4-6 doors after that if she's game for it to continue to build her cash flow.
Goal:
With 6-8 doors in the Midwest generating cash flow and by reducing her monthly housing payments by about $500, we'd hopefully be able to get her into a sustainable financial position and potentially able to retire in a few more years.
Would you do something similar in our situation? Any tips, things to focus on, or other advice? Thanks in advance.
