Hi All, Last Wednesday we had the regular meet-up organised by @skater at Wenty Leagues in Sydney. Happened to finally put name to face for @Handyandy, undoubtedly one of the most successful investors on PC - in both Sydney & US markets. Got chatting with Mrs. Handyandy. Mrs. Handyandy made a good point that any income they receive from property is equally divided into 3 portions: 1) Property Maintenance 2) Bills - inc taxes 3) What they must pay themselves I must admit, no body has articulated it that simply. Typically people use percentages...not really something that gets registered so this formula seemed to make sense. The discussion yielded their take (per my understanding) that if you are aiming for 150k in income, you need to divide that into 3 parts - 50k for maintenance, 50k bills, 50k for what you could pay yourself. So that to me, fails the test of requiring 20 times the income required in unencumbered assets; 20 x $150k = $3,000,000 in equity. i.e. a base portfolio of AT LEAST $3,000,000 TODAY for this to happen at a future point in time. So to really get $150k in income you need to be aiming for 3 x $150,000 = $450,000 i.e. $9,000,000 in equity (20 x $450,000) in today's dollars, i.e. a base portfolio of AT LEAST 9,000,000 TODAY for this to happen at a future point in time. Keen to know your take on this. It's not impossible, however it would really depend on when you start investing. People may disagree with these numbers, but going by what was called out by someone whose been there and done that, I took note of this and I think this point needs important consideration, else all posts which aim for 100k, 150k or whatever amount are a stab in the dark - not saying it's wrong, just that it needs a bit more consideration once that goal is set. Also, @skater made a good point that you don't really need that much to live on comfortably given you'd expect paying down your PPOR was part of the plan and that way you make considerable savings and technically don't really need THAT much to live on - in today's dollars of course. What's your take on this? Edit: These calcs are at 5%. A number of us on here aim for more than 7% returns from day 1 FYI. Cheers.