@Ben FederThat’s me with the assumption you’re living in the home.

@Theresa Harris My assumption is that by paying off their mortgage they will have access to a larger amount of money which could potentially buy them more BRRRR properties.

@Kyle SmithYes your assumptions are correct!

Assumptions:• Purchase Price: $150,000• Down Payment: $30,000• Closing Costs: $2,500• Repair Estimates: $1,500Capital needed: $34,000_____________________________Income: $17,100 ($1,500/mo with 5% vacancy rate)_____________________________Expenses: $12,990.40• Mortgage Interest: $5,360.40 (per annum)• Insurance: $900 ($75/mo)• Taxes: $1,000• Utilities: $420.00 ($35/mo)• Landscaping: $600 ($50/mo)• HOA: $1,200 ($100/mo)• Management: $1,710 (10% of rents received)• CapX/Repairs: $1,800 (10% of anticipated rents received)__________________________________________________________Net Income / ROCE (before depreciation): $4,109.60ROCE: 12.09%Mortgage payment P&I (30yr, 4.5%): $ (608.02)Mortgage principal payments made: $1,935.87Cash on Cash Return:  $ 2,173.73 Cash on Cash Rate of Return: 6.39%

Ultimately, I would like to take off time from work and have rental income support me.Please tell me if my assumptions seem correct.I have a single family 2,300s.f. 4/2.5 that always leases out to 4 post college guys.

An approximate ROI of 30% based on assumptions of tax and insurance. 20% down is $12600.

Perhaps some of my assumptions are incorrect. 

With the assumption you are referring to residential lending and not commercial, the number of notes (secured by mortgages) a lender will entertain varies by lender.  

I am making the assumption that they are gone now?

I summarize the under writing and business plan but I reccomend you read some books on the subject to gain a more in depth understanding which will go a long way in helping you build your portfolio in the future.I start my business plans with market data.You need to find out the following about your market/ sub marketAverge rentsAre rents trending up or downIs it cheaper to rent or own a home What is the median income in your marketWhat is the average occupancy What is average appreciation in your marketWhat are the laws that may apply to your rental investment in your area ie rent control, optional property tax increases.Once you know these thing you can get a good idea as to the supply and demand of rentals in you market and start to make educated assumptions about how yours will perform in the future.Next under writtingFirst understand real estate investment is primarily to things rolled into the same investment firstly an asset( the physical building and the land it sits on) and the business in the building (the tenent/s, cashflow, expenses, and managment.)Not all business make money, and not all investment are winners it's you job to make your business/investment make money.