1.5M with 27.5 years depreciation knocks 50K off from the tax man right off the bat. And then you deduct the loan interests which is the bulk of your loan payment in the early years. So for the first 10 years or so you don’t pay a dime of tax on the 90K income.
Rent will increase with inflation, but loan payment is fixed. Cashflow will grow at a higher rate than inflation.
This is the simplest fool-proof retirement plan I have ever seen. I am so proud of myself. Too bad I didn’t have an awesome coach like the older me when I was younger…
Not only that, saving 500k is not an easy task with all the daily chores of work, family, rent or mortgage, Kids education and the qualifying mortgage…etc.
Bay Area is more like 3 or 4 cap. @elt1 said you can find some 10 caps in Tahoe. I have seen some in Tampa Florida.
500K may seem a lot, but 50K a year and people can get there in 10 years. For a pharmacist pulling in 150K saving 50K a year is doable, but not easy, and takes huge amount of discipline. I wouldn’t be able to pull it off myself.
Too bad I didn’t have an awesome coach like the older me when I was younger… 
