Help me understand how you get wealthy with this?
Hi everyone,
I'm in the analysis paralysis stage of purchasing my first SFH rental property. I'm looking at a $150,00 2/2 townhome, that I think we can get for around $138,000. After all is said and done, it should cash flow around 300-400 a month. But I'll have to put around $27,000 down, to generate 300-400 a month, or about $4500/year. What I'm struggling with is that 300-400 is peanuts. My question is how do you become wealthy doing this?
I appreciate that once the house is paid off, that 300-400 a month becomes almost a thousand a month in my pocket. I also appreciate that if I had 3-4 houses, and they are generating an extra 300-400 a month, then all of a sudden I'm making $1500-$1600 extra a month, and then you can snowball payments to one house, and get to that $1000/month extra quicker, then pay off the rest quicker too, then you have 3-4 houses each generating $1000/month, etc.
Is that how you get wealthy? One house won't do it, but a handful, or even ten houses, will?
Please enlighten me. Thank you.