Then you can be in some less than desirable neighborhoods (I won't name any names lest I offend some people) and you can find very nice streets & homes characterized by high degrees of pride-in-ownership.This set of circumstances also has important implications on sales comps, but that is a whole other discussion.

However, it's looking like I'll have to be in less desirable neighborhoods to accomplish that.

The speed in which I would get to my desired rates would be determined by the law and the likelihood of losing tenants. 

If I adjust for three of the units paying their own electric than my approximate electrical usage drops to $2066 per year which increases cash flow to $5,248 annualy.Here are my numbers as they currently stand:  Assumes $700 mo for the owner occupied unit than 500, 550 and 350  monthly.All tenants are on a month to month so I am not locked in with them so if they don't wish to pay their own electric I can move new tenants in.InputsResultsPurchase price:$105,000Down payment amount:$21,000Scheduled monthly income:$2,100Total out-of-pocket expenses:$22,200Other monthly income:$0Vacancy rate (%):5.00%Debt Service Calculations:Number of Units4Blended rate:5.500%Financing information:1st loan amount:$84,000Down payment (%):20.00%1st loan monthly payment:$4771st loan portion (%):80.00%2nd loan amount:$02nd loan portion (%):0.00%2nd loan monthly payment:$01st loan interest rate:5.500%Total annual debt service:$5,7231st loan term (yrs):30Amortization (yrs)301st loan closing costs:$1,200Income and expenses:2nd loan interest rate:0.000%Gross scheduled rental income:$25,2002nd loan term (yrs):0Gross other income:$0Amortization (yrs)0Total gross income:$25,2002nd loan closing costs:$0.00Less vacancy:-$1,260Total annual operating expenses:-$15,114Operating Expenses (annual):Net Operating Income:$8,826Real estate taxes:$2,300Annual cash flow:$3,103Insurance:$900HOA dues:$0Management fees:$2,640Rates and ratios:Legal expenses:Capitalization rate:8.41%Marketing:Cash-on-cash return:13.98%Landscaping and snow removal:$0Debt service coverage ratio:1.542Maintenance and repairs:$1,320Reserves:$528Other Calculations (precise in one-loan scenarios):Supplies:Minimum desired DSCR:1.2Other:$0Purchase price to support minimum DSCR:$134,935Landlord paid utilities (annual):Average Cap Rate Supported (based on local area):9.6%Garbage:Water and sewer:$2,052MAXIMUM purchase price to support required Cap Rate$84,730 Electricity:$4,210Gas:$1,164Phone/Cable/Internet:$0

I have no desire to grow for the sake of growing - its about hitting a number to replace my current income and getting out of the rat race at which point in time I'll enjoy "retirement" in the sense of working on passion projects and not for a paycheck. 8 years is my target, I currently have 4 doors and I'd like to add 6-10 more.... although my door count was based on the returns I'm seeing on my fourplex - I might need 20 if each property is only going to net me $4k/mo :/

@Jason Ma I would imagine that depends on the purchase price, location, asset class, desirability, value add potential, property/rent appreciation, tenant base, hassle factor, opportunity cost, etc.

and they'll perform due diligence so much in their desired market that even if they don't find a property before their old one closes they will know the market so well that they know instantly a good deal when they see it and act swiftly and decisively.If you don't like paying taxes and can find a better use of that tax money helping yourself then jump in!!

I have no idea how one would actually test this hypothesis.The theory for those unaware is that artists are generally lower income relative to their education levels (this part of the theory is 100% true, based on reviewing the financials of many different people as part of my job), and thus constantly pushed out of the desirable areas.

If you are content with a 3.5% return on your money and have no desire to grow your investments there is no decision to be made.

It’s so complex and seems like so much potential for bankruptcy that my burning desire is matched by anxiety.