I created the following decision tree diagram to illustrate the decision process (click to enlarge).The above decision process is based on the property’s performance record, with the goal of achieving financial freedom in mind.Financial freedom is not just replacing your current income.

However, there is a straightforward process that does not require any secrets or gurus, which is illustrated below (click to enlarge).I will summarize each step below.GoalsSetting written goals is the foundation of any successful venture.

Thanks,~PaulClick on image to enlarge.

(Click to enlarge.)I've created the following decision tree to help determine the best option based on your situation.

You may need to click the images to enlarge them.Summary of the Year 1 cash flow: The details: $82k purchase price, 25% down payment, 25% reserve for maintenance, vacancy, and management.

(Click to enlarge.)So, if you purchased a property whose characteristics match the housing requirements of the Transient segment, you would likely lose a lot of money—no matter how cheap the property.

(Click to enlarge.)The key point is that financial freedom depends on income, not property specifics.

The diagram below illustrates this cause-and-effect relationship (click to enlarge).Also, the goal of real estate investing is not to own property.

(Click to enlarge.)As you can see, financial freedom has two primary dependencies.

(Click on the image snippet above to enlarge it and see it more clearly)