A lot of people think that using rental properties to achieve financial freedom is either too hard or it takes too long.

It's too hard because they think they have to have dozens or even hundreds of rental properties and it's going to take all of their time and be a lot of hassle. And it takes too long because they think they're going to have decades and decades of sacrificing, delaying gratification until they can finally enjoy their life. Now, as someone who's actually used rental properties to achieve financial freedom in my 30s,

and who wrote a book called The Small and Mighty Real Estate Investor, I found these concerns to not be true. And in the rest of this video, I wanna give you a very simple plan for building wealth using rental properties so that you can get out of the financial grind and spend your time doing more of what matters. You can think of this as a

blueprint or a step-by-step guide. I'm actually going to draw it out just like you're sitting

here right next to me so that's easy to understand and so you can apply it to your own life.

Now I want to start by talking about the big picture of how you actually achieve financial freedom.

Because if you want freedom, which basically means being able to do whatever you want with your time,

you've got to separate this idea of just working for money.

Instead, you have to have investments, in this case, rental properties that produce enough cash flow or income every single year to cover your personal expenses.

So you don't have to go to work.

And in my book, The Small Mighty Real Estate Investor, I borrowed this term, but I called it

your FI number or your financial independence number.

And it's basically just a number that you choose

as your goal to replace all of your expenses. A number that you would feel comfortable with saying,

hey, this would be enough money that I wouldn't have to work a job. Even if I want to keep working

a job, I wouldn't have to. So maybe that number for you is $60,000. Maybe it's $120,000.

Whatever your number per year is, that's your business. But the concept is you need to have that cash flow coming in in the end as your goal in order to have that freedom that we want. Now, here's a mistake, though, that I see a lot of people making when I'm having one-on-one conversations and helping them think about this big picture, is they think, okay, well, cash flow is obviously one of the most important things.

I need to have that for financial freedom.

Therefore, I'm just going to go out and buy a bunch of cash flow properties.

I need to buy in a market that meets the 1% rule.

I need to buy cash flow.

And so let's say I could buy properties that make $200 per month and cash flow and $200 is not enough.

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