Retire Debt-Free by Building Your Real Estate Portfolio

Investing in real estate is a fairly straight-forward process and the younger you start the larger your portfolio potential will be.  

Here is the formula I have used in building my personal real estate investment portfolio:

• Buy 1 investment property every 2 to 3 years
• Put down 20-25%
• Keep the property leased by being a responsible landlord
• When you do have a positive cash flow, REINVEST the money by applying it toward your loan principal
• If all goes well your property will be paid off in 20 years
• For example, 20 years from now, in 2034, if you stick to this basic formula you will own 3 properties (at a minimum) and here is how your typical DC-area investment will pay off:

3 Properties are paying $3,000 a month in rent, which equates to $36,000 in annual income.  If you have 3 properties the total income annually is $108,000.