Quote from: o_e_l_e_o on August 27, 2019, 10:24:48 AM

Quote from: FinanciallyFreeFox on August 27, 2019, 10:09:20 AM

My plan, simply put is:

Invest a % of my Income into BTC (£100,000 / $120,000) - I have almost completed this step
Wait for that investment to grow by 5-10x
Pull out my profit and invest into residential property
Live off the rental income (passive income will be £100,000 / $120,000 p/a)

I think it's great to have a long term plan set out prior to any major investment, and to have a goal you are aiming for. You should have a set price at which you want to cash out your bitcoin; too many people during the last bull run got greedy and just kept waiting and waiting for a higher price, and then ended up panic selling on the way down, often at a loss.

Having said that, I'm not sure I follow your numbers there. Even taking your higher growth target of x10, that gives you $1,200,000 to buy property with. A passive income of $120,000 is 10% of your property's (or properties') total value. On top of that you have to factor in taxes, legal fees, administration fees, insurance, maintenance costs, repairs, and so forth. Add all that together, and the monthly rent you are going to have to charge will be way above the going rates.

Very good question.

With $1,200,000 invested in property (in the UK) with a 25% loan to value mortgage, that gives me the ability to purchase properties with a total value of $4,600,000 (slightly less of course due to fees).

Generally when I invest in property, if I invest for example £30,000 in a property (including fees), then I would expect as a minimum of 10% ROI, i.e. £3,000 per year in NET Profit (this is of course after all expenses including maintenance and property management).

Of course, you can only get these ROIs when you are using a mortgage to purchase property with low interest rates, e.g. 3%. So we will see what the interest rates are within the next several years.

But good investments typically net between 20% and 30%, but higher ROIs are possible using the BRRR strategy.

I'm a property investor, so trust me on this