How Many Rental Properties Do You Need to Retire?

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How can I continue getting bank loans for my buy and hold properties? The banks will not count rental income until it’s full two years of tax returns, which is almost three years of ownership. If I keep buying five units per year, my debt to income would be too high to qualify very soon. I have good W2 income and earn a good amount of cashflow.

But the bank sees me as having less and less income. Every time I buy a new unit until it’s seasoned, even though the reality is I’m increasing my income, your net worth is over half a million. I think you should probably look to investigate more scalable investments. That way you don’t have to do anything.

You don’t even have to put any debt in your name, private placements and syndications. You can get more information at that on my ultimate guide, it’s simple. Passive But to summarize here, this is kind of a moot point. I’ll just say from my experience, I had 11 rental properties and I had one or two evictions a year and some kind of big issue that came up like in a basement or a tree fell on my house, maybe four times a year with that many rental properties.

Normally I’d cashflow two or $300 a month on each of those rentals. So we’re talking about 2,500 $3,500 of cashflow a year. Not bad, right? I mean, I’m not complaining, but let’s face it. A lot of us two or $3,000 a year is not enough for you to quit your day job or be financially free. You’re going to need to triple that number.

So if you’re going to triple that amount of rentals, you can get up to 20 or 30 of those things. Now you’re talking about an eviction every other month and some kind of big catastrophe that happens every other week. Pretty much. And you’re starting to realize how this is becoming quickly, not scalable.

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