Real Estate Investor Buys 11 Single-Family Homes over a 10 Year Period:
Net Monthly Tax Free Passive Cash Flow @ $300 per home = $3,300
Equity Captured @ $10,000 per home = $110,000
A Single Resident of New York City Earning $60,000 W-2 Income Annually from an Employer Receives the Following Net Monthly Income:
Salary
$60,000
$60,000 Federal Tax$ 11,424
$ 11,424New York State Tax 2,072
2,072New York City Tax 1,994
1,994Social Security and Medicare 4,500
4,500Less: Total Annual Taxes paid 19,990
19,990Net Annual “Take Home” Pay 40,010
40,010Net Monthly “Take Home” Pay $ 3,334
$ 3,334The above calculation illustrates how, over the long term, one could replace his or her heavily taxed earned income with passive tax free streams of income. When one successfully replaces their earned income with passive income they have effectively retired themselves or a family member. Thus, retirement should not be thought of as some distant, unattainable brass ring in a person’s mid-to-late sixties.
AFFILIATED WITH GREAT REAL ESTATE, INC.
Replace Earned Income
