How high is up? We need to know a lot more about your capabilities, temperament, financial self discipline, income, present financial net worth, living expenses, lifestyle, etc., before we can answer your question. Here’s a formula you might be interested in if you have the ability to buy and manage rental houses.
Everyday, look for at least 10 houses ads for sale by owner. Call the owners and get full details about the property. Each week, make at least 10 full written offers to owners on the most creative terms you can conceive in order to buy houses at about 20% below fair market value. Expect to have only 1 offer out of 100 accepted. That will require about ten weeks between each purchase, or one out of 700 phone calls. The 10 week interval will enable you to round up cash for a small down payment and give you time to get the house either rented up or resold. It won’t be easy.
In a year, you could have 5 houses for which you might have paid $25,000 – $50,000 in total cash depending upon their price and terms (or far less if you have been creative at all). If they are worth $100,000 each and increase 5% per year, they will earn you $25,000 in UN-TAXED NET WORTH plus another $100,000 in equity derived from negotiating a purchase price of 20% below market value. This would equal $20,000 X 5 = $100,000. Do this for 5 years and you will have amassed $625,000 plus rents and amortization. You should never run out of money again.
From Jack Miller’s Q & A Manual… available at CashFlowDepot.com soon
