If I keep persistently buying rental properties and renting them out, after 10 years...?

Question

will I be independently wealthy? I will only be buying properties that produce cash flow.

Answer 1

There is a lot of factors that go into your equation.

Cost of house
Repair Expense
Expenses related to tenant's not paying or leaving w/o paying
Local laws and regulations
taxes
Location of property
Class of tenants

All this has to be weighed. Unless you have $100,000 up front it will take much longer than 10 years to get your destination of independently wealthy.

Answer 2

No. My rentals just barely cover all my expenses and pay my own property tax. But they're a great tax write off.

They're decent properties, but rents at market value for the area. Which is just enough that they don't leave for a cheaper place. If I totally jacked up the rent, they'd be running and then I'd have vacancies.

You better have a lot of time on your hands to ladder up rentals for 10 years. Good luck.

Answer 3

YES do the math....say you buy 2 house a year at 50,000 each for 10 years which produce positive cash flow.You will own 20 houses at 50,000 each which totals to 1,000,000. If the houses are not paid off...you will still have a lot of equity. Assuming the houses does not decrease in value.

Answer 4

You may be wealthy but on the other hand you may wind up broke and owing more than you could imagine. Rental Properties have some major drawbacks esp when you have to take people to court and sue them then they still don't pay you.

Answer 5

Possibly, depends on how you manage them. I know a gentleman who owns about 55 properties, and his goal is to let his renters pay off the mortgage over time, and when he's ready to retire he can dump them off as needed. It all depends on your goals, whether it is a short-term or long-term one.

Answer 6

That depends on what you call wealthy!!