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Updated: Oct 15, 2020

How buying Seven Properties can generate over 5 Million Dollars

This article is about how little the average pension plan provides for the working class. By no means am I saying that you shouldn’t have a pension plan. My main take away for readers is, why not create something better for yourself and have both?

Passive Income and a Pension? Sign me up!

The numbers I will use for this article will be based off what my pension plan being a Union pipefitter would be. I have worked in the industry for six and half years, my pension plan with the union is based off hours worked since I have been employed. I have worked on average 2,750 hrs per year, if I were to retire right now I would get $482 dollars per month.

Doing the math on what I earn for every year of service, it works out to be $75 dollars to my monthly total.

Just like any pension there is multiple rules on what you can and can’t do with this money and when you have access to it. I am able to pull my full pension at 63 years old without any penalties.

Starting at age 19 and working until I am 63, I will receive $3,300 monthly give or take for 44 years of service to the company.

For my younger readers this may not be the most interesting stuff but it is so important in terms how you set yourself up for retirement. In my case I wish I had someone explain it to me at age 19, so I could have started investing into real estate sooner.

For all those who want to retire early, I am going to show you exactly how you can make that happen without having to dial back your lifestyle for retirement. This is all about a little discipline.

Building off of my last blog post of how any young adult can invest to purchase their first property on their college graduation day, how you can use “house hacking” to live for free once you have purchased that first initial property. We are going to be rinsing and repeating that process over the next seven years.

Typical investment property’s require a 20% down payment, by making this your “primary residence” you are only required to put 5% down. For example a house with a basement suite purchased at $240,000, would cost you $14,500 to purchase. In order to purchase one property per year, will require you to move every year.

I do understand how many people wouldn’t enjoy living in a house with a basement suite, but you need to think long term. This living situation is perfectly functional, and can allow you to save $1,800 a month. Which is the average a Canadian spends on owning a home. Living in a suited home for the next seven will set you up for the future.

The whole idea of living in that suited home is to get most of your major monthly expenses and the cost of owning a home down to almost zero. Once you move out of each house, they will produce a monthly cash flow of $515, which is an annual income of $6,180. Do this over the next seven years and you will be bringing in $3,605 monthly cash flow = $43,260 of annual income plus all your principal pay down from the (Mortgage)!


Annual Net Income or $6,180 + 6,983 in principal pay down total of $ 13,163 a ROI on $14,500 originally inve­sted of 91%

WOW now that’s some major return on investment!

Now it's seven years later and you would have total of $3,605 of net income from the positive cash flow with a yearly net income of $43,260 with $48,881 a year principal pay down, giving you a total of $87,941 of yearly income. In just seven years you can create a better “wealth generating income” then any pension plan out there.

Remember this whole time you were saving that $1,800 a month from cutting your living expense down? Lets say you have been investing that money into an index fund over that seven-year period of time to create a nest egg of $217,922.65.

What do you do next?

How about you leave that $217,922-nest egg in your investment account and let in compound for the next 20 years and punch yourself a one-way ticket to early retirement?

Option two: Let’s take that $3,605 of monthly income, dollar cost average that over the next 20 years. That TURNS INTO $5,219,128 in the bank, just from investing the net income from real estate.

Allowing you to retire and live off a $626,295 of annual interest from your investment account.

20 years from now, you will have a few or all of your SEVEN properties paid off giving you $10,990 of net monthly income. This is an annual income of $131,880 from your Real Estate Portfolio.

How’s that for a pension plan?

Potential annual income of $758,175 taking you 27 years to create, compared to 43 years of working to generate $39,600 in your pension.

Image the lifestyle you will be able to live when you can retire in 27 years and have it all.

It comes down to your choices, are you going to rely on someone else to help you retire or are you going to create wealth for generations to come.

I know these numbers all seem too good to be true, starting with just using $14,500 to purchase a few properties has some massive potential. Everything that I write about in my blog I do personally.

If you have any questions or want to learn more about investing, please contact me. I work with anyone wanting to start investing. As an advisor, I have a dream and a passion of helping out regular people just like you and I achieve all their financial dreams.

The two young kids I mentor, Caleb and Cam, are also implementing this strategy that will allow them to retire at 50 years old.

We weren’t put on this earth to just be average!!!!!

Please if you have any question reach out!

I enjoy helping people achieve their dreams and goals. Real estate investing has changed my life, I need to share it with the rest of the world!

Zero financial stress is a fantastic feeling.

Russ Mortlock

Caleb Irvine’s Instagram

Cam Hall’s Instagram

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