critique my plan please!
I am 28 years old and have been paying $2350 on top of our $1200 monthly payment on our 120k house (taxes are about 400 a month here) @ 6%.
I was wondering what would happen if i paid it off, but then continued to buy one house at a time as it is paid off too. I figured it would look like this:
after I pay off my house, I can put $1200 + $2350 (like I do now) + $900 (assuming that is what my house would rent for after taxes) = $4350 a month on a house of the same price. After 3 years, I would outright own this, and could put approximately $1100 a month after taxes with what I was paying already, for my next - $1200 + $2350 + $900 + $1100. This would pay off the 3rd in a little over 2 years ....
Doing this about 6 times would give me a small handful of properties I would own free and clear over the course of about 10 years. The cashflow could probably be about $6000 a month or so.
Is this a good plan? Could I then retire at that point??? How would you do it?