Having an income that generates consistent income is crucial to retiring comfortably. A lot of people think that they have to be 65 to retire, but if you get the right properties and manage your portfolio properly you can retire at any age.
Lets look at what type of plan you may need and how many homes it would approximately take to generate $100,000 a year. You have to also look at the approximate equity that might accrue fro you property. Probably a 5% growth is a good number to use.
Each property will need to net $600-$900 a month after taxes,insurance and property management. So lets make an average of $750 net per month. Which would be $9000 a year. So you would need around 11-12 properties that generate these returns.
The second part of this formula would be the tenant turnover and the quality of tenants in your real estate portfolio. That is a very key factor to your success, a lot of investors just look at the net income, and never think of the tenant turnover. That cost you at least 2 months income and whatever repairs you might have to do.
Say you buy 3-4 year of quality real estate? Then you could retire in 3-4 years with the right real estate. Generating income with real estate is not difficult with the right real estate portfolio.
I look at income real estate that you can buy for $70,000-$185,000 that would meet the income needs. I just looked at very nice $70,000 condo this week that will net approximately $700 a month. Do twelve of those types of properties and you over $100,000 a year. These properties also have a great chance to get equity.
You will have some expenses for maintenance and renting them, but in the right neighborhoods you will have longer term tenants and very consistent income. We can also keep the maintenance low for you in many different ways.
If you use my property management we will guarantee the tenant for 12 months. If they do not stay for 12 months then we will replace that tenant for FREE. Same credit checks and all the other details that go into getting tenants.