You are counting on a huge amount of equity, and you can’t count on that.

Also, the process of buying and selling is expensive, I am not even thinking about selling anything right now.

You have to have a huge amount of income to qualify to buy the 5 houses in the first place, and at least 20% cash as they are investment properties.

Why don’t you buy and sell one first and see what is really involved?

I own almost 30 and while my net worth would give me teh title you seem to think is important, it is not that big a deal . It is only on paper anyway.

Also, apartment complexes do nto pencil out that well, You should price some and see what I mean.

Do you have that kind of cash?

The amount of appreciation you would need in order to sustain the growth you’re anticipating would likely be unrealistic in today’s market. The fact that you would want to sell after only a year means that you would need to clear the mortgage, realtor commissions, taxes and any other fees associated with a title transfer. Doesn’t work out in any of the models I’ve run.

Plus, you’re not taking into account the vacancy rate on these properties (presuming you’re going to rent them out.) You need to calculate how long you can sustain yourself without tenants, and how many tenants you need in order to turn a profit out of the original houses.

If this works out for you, you’re a Realtor’s dream come true.
I’m also a realtor, so feel free to send me a message if you’re in Pennsylvania!

Are you paying cash for the houses? You would have a hard time financing them. Do you plan to rent them for a year? How much do you plan to spend on fixing them up to sell? What will your vacancy factor be? If you don’t rent them, your capital stays idle in an empty house. Each house has to go up at least 10-15% a year just to break even, because you have selling commissions, closing costs, insurance, property taxes, and other expenses of home ownership. The plan is riddled with flaws.

If you have enough capital to buy 5 houses in one year, why not invest it in the apartment house instead? Why wait five years? There is no guarantee that your houses will yield more than you paid for them. They might, but you are speculating and taking risks. there is no sure investment, especially not in houses.

Rework your plan and invest your money much more wisely, and you may yet reach your goal of becoming a multi millionaire. I hope so and wish you luck.

And now – the house is 5 years older and you may have to invest money into the house to get it into shape for sale – esp if you expect to get top dollar. In the mean time – you have insurance and carry costs associated with the homes.