$70,000 salary/52 weeks = $1346/week
$700 monthly rental income x 12 months = $8400 annual rental income
$70,000 salary / $8400 annual rental income = 8 rental properties
However, I like to be conservative with my numbers. In my ROI formula, I always remove 40% from my rental income to account for any potential vacancies, repairs, or expenses. I don’t want to be short at the end of the month anymore. I’d rather be pleasantly surprised with extra funds, so let’s work that into the formula:
$8400 annual rental income x .6 = $5040 per property, per year
$70,000 / $5040 = 14 rental properties.
That means in order to completely replace a $70,000 salary, all you have to do is acquire 14 rental properties. That’s a totally attainable goal, and we’d love to show you how!