Retirement Income:Income from retirement accounts like pensions, annuities, and distributions from retirement plans like 401(k)s and IRAs.

My strategy is to invest in a long term buy and hold so my properties serve as annuities down the road, so cash flow is important...

Based on your post you are looking for a 120% return annuity ($120,000/year) in 5 years through a passive income source (note: there is nothing that is truly passive you will have to put time and energy into any investment in some way). 

I really have determined over the last 6 years its annuity. 

To give some quick background, about a year ago I received a small annuity and have since set myself to learn all that I can about real estate investment. 

You'd be surprised with how many sellers are attracted to this type of sale because they receive an annuity. 

An annuity is a note. 

It was a newer home with less square footage and fewer annuities and it sold for $107,000.The buyer offered $98,000 for my property.I countered at $105,000.

You've sold that $51,000 in equity with the house, and are in essence getting an annuity from it.  

One thing that is interesting is that you can see that only a small allocation (between 5-7%) of a millionaire's networth is allocated to annuities and life insurance and 3-5% of a millionaire's networth is allocated to qualified retirement accounts which leads me to believe that these middle class and upper class millionaires rely less on life insurance, qualified retirement accounts, and annuties as they have already self insured themselves with their small businesses, real estate investment income, and equity holdings.