Originally Posted by OneHungLo

You calculated wrong and you do not buy RE with cash.

Here's a super fast example with obvious things left out but it should put you in the right frame of mind.

EXP 1: You buy one house for $100,000. It rents out at 1k a month = $12,000 a year.

in 20 years | $12,000 x 20 years = $240,000 + (lets say the house doubled in value) $200,000 + $240,000 = you made $440,000 on your $100,000 investment.


EXP 2: You take your $100,000 and buy 10 houses putting down $10,000 on each house. They rent our for 1k each but most goes towards paying down mortgage. After 20 yrs, mortgages are paid off and (lets say they are now renting out for $2,000 a month) $24,000 in rental income. Now you have 10 houses worth $200,000 a piece = $2,000,000 with $24,000 a month in income.