Tuesday, November 10, 2009
Retire in ten years
I wanted to show someone now that a person who has 100k now and just an average income how to retire in 10 years. I have been finding properties FOR SALE IN THE SACRAMENTO CA area that are selling for 70k or less. The amazing thing about this is that the rents on these houses are still $1000.0 to $1150.0 per month. I have caculated that if you were to put 25% down your loan amount is $52,500.0. A payment on that loan amount for 10 years at 6% is $712.0 per month. This payment includes P.I.T.I. If the rent is $1150.0 per month and you take away a $150.0 per month for property management and utilities you still have a positve cash flow of $288.0 per month. These are all homes that once sold for 200k. If you buy six of these homes over the next 12 months, you would have $1728.0 of positve cash flow along with the fact that you will own these 6 homes free and clear in 10 years. I would be conservative and say that these homes would be worth 150k in 10 years. You would have 900k in equity and $6000.0 per month in net income.I think you could at least work part time with this income or even retire.