A plan of how to get to a passive income of 4k/mo in 11 years. Hard but doable.

[J.K.]

I came up with this extremely conservative and very long-term idea of how to retire at age 41, constituting my current income by almost passive income of the same size.

If I save up 3k/mo, in 20 months I will be able to buy a 2-room apartment in my city for 60k
I can rent that for at least 400 bucks/mo, and add this money to the other 3k that I am saving up.
This will accelerate the rate of getting to 60k for the next apartment, which I will be able to buy in, say, 18 months.
rent that one out and add the money to the other 3400.
Keep doing that until I am making 4k/mo from renting, it will take 11 years of hard work and saving everything. Then I can stop working forever.

Has anyone ever done that? Do you have any feedback?

(taxes for lending here are 10%, 4k here buys 4000 cheeseburgers)

 

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[Merging Left]

The $400/mo that you rent your new 2-room apartment does not count for your expenses. You'll need to consider your cost of insurance, property taxes, HOA fees, general maintenance, vacancy, utilities if you pay them, etc.

Your plan is sound, and perfectly legitimate. Just make sure you're considering all of the factors that you need to be considering.

 

[J.K.]

The $400/mo that you rent your new 2-room apartment does not count for your expenses. You'll need to consider your cost of insurance, property taxes, HOA fees, general maintenance, vacancy, utilities if you pay them, etc.

Your plan is sound, and perfectly legitimate. Just make sure you're considering all of the factors that you need to be considering.

well, where I live, the yearly tax is about 50-100 bucks so its negligible. Insurance is 13 bucks/mo so also negligible. Utilities are typically paid by the renters. However, renters often leave without paying so that's a problem, indeed. Could turn out to be a lot of hassle, especially when there are 10 families to deal with.