Here's the numbers, I like numbers. My near term goal...
I'm looking to get 19 mortgages between my wife and I in the next 3 years while rates stay low. I figure that's a great start to our retirement though by no means the end. I'm going to guess that'll be about 50 doors. I'm shooting for about $2M in debt on those 19 mortgages. Here's the fun part.
I target a minimum of 1.5% rents which at the low end keeps debt servicing right around 33% where I want it. This means $2M in debt would generate $30k in monthly rents, $5,100 in free cash flow (17%). If we assume straight line equity pay down over 30 years, we're also "buying" $5,555 of house each month with our mortgage payments. If we assume the market returns to appreciation matching inflation at 3%, our portfolio is appreciating in value by about that same amount, $5,555 a month.
So add them up... if I hit my plan of 19 rentals valued at $2M rented at 1.5% of purchase price generating a debt to income ratio of 3:1 with long term 3% inflation/appreciation, our net worth goes up $16,210 a month. How many "normal" people would love to be able to say that?