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Account Closed
  • Evergreen, CO
22
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Thoughts on this financial freedom plan?

Account Closed
  • Evergreen, CO
Posted Mar 17 2017, 14:55

Hey BP

I'm in the early education/planning phase of my REI journey, laying out a road map to financial freedom, and I'd really like your input.

I am leaning heavily toward a focus on multi-family rentals and want to see what you think about the 10-year plan outlined below.

Here are the assumptions:

  • The goal is to have a passive income of $150K/year by 2026.
  • I'm assuming $150 of cash flow/unit/month after the 50% Rule (e.g. $1200 rent / 2 = $600 - $450 expenses = $150)
  • I've got $40K available for downpayments this year. Closing costs, inspections, reserves, attorney's fees, etc. would be above and beyond this and are not pertinent to this calculation.
  • I think I can come up with another $40K for downpayments in 2018. In 2019, I would need $80K for downpayments and that number would go up in the years to follow. I don't yet know where the $80K would come from, but imagine that some of it would get pulled out of the 4 properties that I own by that time.
  • The $100K purchase price is an average and that could certainly go up over the next 10 years.

Here are my questions:

  1. Do you see any glaring problems with the plan or the assumptions?
  2. If you had $40K and were working a full-time job for the foreseeable future, how would you invest it today?

Thanks in advance for your input!

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