All Forum Posts by: Nelson Kaeb

I've learned one thing from this post.... stay outta California.

@Darius Ogloza thanks for your thoughts.

It is the first time I have heard of lower priced homes losing value. I'm from the Midwest where the average home price is in the 180 range. From any research on my end it would show home prices easily exceed appreciation. Now of course that doesn't account for the ridiculously excessive money printing that have been occuring.. but many things could change rapidly due to that. Interesting thoughts none the less!

Also, I can see where a higher mortgage on a 15 year note could cause issues with cash flow. That has been the primary concern while rolling around this idea.

I have recently been rolling around an idea for early "retirement". I'm sure I am not the first person to have considered this so I am looking for other opinions or potential pitfalls I have not considered.

The idea would be to retire in 15 years through only 15 properties. The plan would be to purchase a property priced slightly above your desired annual income. If you wanted a 100k yearly income, focus on properties in the 120k price range. After finding a property that makes financial sense, purchase the property on a 15 year fixed rate. Stabilize the property and get a quality tenant in place.

Year 2, repeat the process.. year 3 repeat the process and so on to year 15. At year 15, the first property is paid off with 120k in equity available. Refinance the property withdrawing 100k tax free cash for the years expenses. Year 2, refi the second property.. continue as an endless cycle.

Now of course you would need to hold a steady job to handle a good down payment for the first 15 years.

Is there a major issue with such a strategy?