Example:

Property 1

Year 1 - First Property is purchased for $100,000 (Price based on current Market Value)

Gross Rental Income $1200 p/m per Property - $1200 x 1 x 12 = $14,400 (covers all outgoing costs)

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Property 2

Year 2 - Second Property is purchased for $120,000 (Price based on future Market Value)

Loan repayment on $120,000 over 5 years  is approximately $2,100 per month - $25,200 per year

Gross Rental Income $1200 p/m per Property - $1200 x 2 x 12 = $28,800

Net Rental Income from Property 1 and 2 annually is minimum $25,200 per year

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Property 3

Year 6 to 7 - Third Property is purchased for $170,000 (Price based on future Market Value)

Loan repayment on $170,000 over 5 years  is approximately $3,150 per month - $38,000 per year

Gross Rental Income $1300 p/m per Property - $1300 x 3 x 12 = $46,800

Net Rental Income from Property 1, 2 and 3 annually is minimum $38,000 per year

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Property 4

Year 11 to 12 - Fourth Property is purchased for $220,000 (Price based on future Market Value)

Loan repayment on $220,000 over 5 years  is approximately $4,200 per month - $50,400 per year

Gross Rental Income $1400 p/m per Property - $1400 x 4 x 12 = $67,200

Net Rental Income from Property 1, 2, 3 and 4 annually is minimum $50,400

(excess funds can also be used to pay down the loan)

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Conclusion

In Year 15-17 the Shareholders of the Company will hold 4 properties completely free and clear of loans & debt. 

The value of the Property Portfolio at that time will be around $1million with a rental yield of over $60,000 per year.

 

Your initial $25,000 Investment is worth 10 times original value, you own Property and you have a Retirement Plan.

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