Q. I hope to retire after 4 or 5 years of working. I want to own 3 or 4 Rental properties, how long do you think it will take me? I plan to live in my Parents house...so I have free rent. I would be making about 45k per year after taxes without overtime work or weekends. my houses will be rented out when I purchase them. My plan is to try to get my houses paid off as fast as possible, and then move to a cheap country like vietnam or Thailand during the winter months, and still work here in the states during the summers for while. I welcome everyones opinion on my plan ;)
A. you are totally delusional
for any rental property, you will need 25% cash up front for down payment and closing costs and you won't have enough of a credit history to get a mortgage until you are working full time at least 2 yrs and have established GOOD credit with a credit card and car loan first
retire after 5 yrs? - why would your parents let you live there rent free when you are making $65k a yr before taxes (which you won;t be making for many years, if ever) and what will you be doing to make that much money? with a 4 yr college degree, it might take you 5-10 yrs until your take home will start to be anywhere near $45,000 a yr - depending on your college degree, you will most likely only start out at $40-50000/yr BEFORE TAXES AND DEDUCTIONS and how do you know you will never have to work nights or weekends - you work when your boss tells you to work
you will be lucky to make even $100 a month in net cash flow per house at first and you may need all that money to pay for repairs and maintenance - no where near enough to live off of for 50+ yrs of "retirement"
you won't qualify for anywhere NEAR $300,000 worth of mortgages with that little income and you certainly wouldn't be able to pay them off in less than 10+ yrs - even with paying tenants and if the house is only worth $75,000, you aren't going to get any more than $700 a month rent, which will barely cover your monthly costs
if if houses only cost $75,000 where you live, I seriously doubt there are many jobs around that even pay $40,000 a yr, never mind $65k - you may have to commute 50 miles each way
real estate prices are closing related to local household income levels - typically probably 3+ times the avg household income
how are you going to be able to afford a family, health insurance, car payments, car insur, utilities, etc when you are retired that young
you will run out of money pretty quick, no matter where you live, because you are not going to have all that much saved up after working only 5 yrs
for any rental property, you will need 25% cash up front for down payment and closing costs and you won't have enough of a credit history to get a mortgage until you are working full time at least 2 yrs and have established GOOD credit with a credit card and car loan first
retire after 5 yrs? - why would your parents let you live there rent free when you are making $65k a yr before taxes (which you won;t be making for many years, if ever) and what will you be doing to make that much money? with a 4 yr college degree, it might take you 5-10 yrs until your take home will start to be anywhere near $45,000 a yr - depending on your college degree, you will most likely only start out at $40-50000/yr BEFORE TAXES AND DEDUCTIONS and how do you know you will never have to work nights or weekends - you work when your boss tells you to work
you will be lucky to make even $100 a month in net cash flow per house at first and you may need all that money to pay for repairs and maintenance - no where near enough to live off of for 50+ yrs of "retirement"
you won't qualify for anywhere NEAR $300,000 worth of mortgages with that little income and you certainly wouldn't be able to pay them off in less than 10+ yrs - even with paying tenants and if the house is only worth $75,000, you aren't going to get any more than $700 a month rent, which will barely cover your monthly costs
if if houses only cost $75,000 where you live, I seriously doubt there are many jobs around that even pay $40,000 a yr, never mind $65k - you may have to commute 50 miles each way
real estate prices are closing related to local household income levels - typically probably 3+ times the avg household income
how are you going to be able to afford a family, health insurance, car payments, car insur, utilities, etc when you are retired that young
you will run out of money pretty quick, no matter where you live, because you are not going to have all that much saved up after working only 5 yrs
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