How Much Real Estate Would an Investor Need to Acquire Today to Receive 1 Million in Annual Cash Flow

To receive $1 million in annual pretax income now, an investor would need to acquire 102 single-family rentals at once and own them free and clear. Anything less than a 100 percent equity position requires a substantial increase in property ownership as well as a greater investment of cash. For instance, if an investor chooses to close with 50 percent down payments, he or she will have to acquire more than 240 homes for a total investment of over $16.3 million.

2 Mortgage interest rates are based on the average recorded rates from 1992 to 2003. Receive a Million

As illustrated in the chart below, to achieve this goal immediately an investor needs to invest $13.8 million to gain a 100 percent equity position in the properties and save $3.5 million by acquiring properties at a 20 percent discount. Achieving a million dollars in cash flow today requires a substantial up-front investment. The good news is that most people don't need to Receive a Million immediately. Most people have at least some time to let the advantages of investing in real estate work in their favor.

$IMillion in Annual Pre-Tax Income Buy It Now—Receive It Now

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