I recently wrote the article Estimating My Future Retirement Income Based on Age of Retirement in which I figured a rough estimate of our future income at retirement for different ages from 51 to 70. That estimate was based on the status quo situation for our finances. However my wife and I do plan to buy more rentals in the future. So, how would the future retirement income change if we had more rentals?
I figured the numbers for a basic rental in our area. And then reran the calculation to refigure the retirement income estimates. I then added more rentals to see how 1, 2, 3 or 4 additional rentals would add up. [note : I am assuming that we finance the purchase of the rentals and then make mortgage payments while gradually building equity over time. Bear in mind these are very rough calculations with some assumptions and variables that can change over time.]
Here is how the income projection changes based on adding more rentals:
Pretty roughly speaking once I get to around age 55 I could possibly plan to retire 1 year earlier for each additional rental we buy.
So for example, say I wanted a retirement income of $100,000. With our current assets I am projecting that I might hit that amount around age 59. If I add one more rental then I project I'd have $100k income at age 58. Two more rentals would help me hit the goal at age 57. Three more rentals and I'd hit it a few months after age 56 and finally with four more rentals I'd hit it at about age 55.5.