Assuming a $2000/Mo starting rent and a $1700/Mo expense:Year 0: $2,000 x (1 + 8%)^0 - $1,700 ≈ $300: $5,000 / $300 = 17 propertiesYear 1: $2,000 x (1 + 8%)^1 - $1,700 ≈ $460: $5,000 / $460 = 11 propertiesYear 2: $2,000 x (1 + 8%)^2 - $1,700 ≈ $633: $5,000 / $633 = 8 propertiesYear 3: $2,000 x (1 + 8%)^3 - $1,700 ≈ $819: $5,000 / $819 = 6 propertiesYear 4: $2,000 x (1 + 8%)^4 - $1,700 ≈ $1,021: $5,000 / $1,021 = 5 propertiesWhile the above is over simplified, the concept is sound.Sufficient IncomeYou'll need income from multiple properties to replace your current earnings.

@John Edwards hmmmm... thanks for the heads-up.

If I'm understanding you correctly, yes you have the concept correct. 

@Edward Wyliecan you be more specific? 

Too early to tell but the concept is interesting and the properties appear to be reasonably vetted.   

To intentionally reduce the leverage more than required is a foreign concept to me.Best wishesDan, financially you are, of course, correct.  

While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

Hey @Edward Segaar, great to see you’re considering a BTR for your first rental property!

It's a pure B2B concept, where adults, knowledgeable and knowing what they are doing, can get rid of dilapidated, uninhabitable properties, or buy those properties for fixing and profiting from rehabbing.

I've also heard anecdotally on BiggerPockets that the concept of other States being super landlord friendly is sometimes overblown (in other words, sometimes even in the most landlord friendly states, things can get sticky)In other words, I'm not sure how much the potentially friendlier landlord laws would convince me to purchase far away in other state, when that also comes with its own challenges (the inability to self manage, property management fees, etc) This debate on whether I should locally invest vs out of state has left me wasting time so now I feel I just have to make a decision and go for it. 1.