Matt is divorced, 54 years old and sees retirement headed his way. He’s not fully prepared but he does have a 401k that will provide him with about $2,500 per month per his estimate, but he’s still short another $2,500 of his $5,000 monthly income goal. Unfortunately due to a messy divorce his credit has been damaged and he can’t qualify for a loan. But he does have $50,000 cash in the bank from the sale of his previous home.

His goal is to buy a single-family home every two years until he finally meets his $2,500 per month needed. He reviews a potential investment in Ohio presented to him by a turnkey real estate firm. The turnkey company has done all the math and will also manage the property for him including maintenance and collecting rent. The tenants pay all utilities but there is a property management fee. The proposal says:

In five years, he will need to acquire four more properties that cumulatively provide an additional $2,000, or $500 each to reach his retirement goal.