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Forums » Starting Out » living off rental income

living off rental income

27 posts by 20 users

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· Buena Park, California


I would like to know how many people here are living off rental income. The ability to quit your 9 to 5 job and manage properties sounds interesting! If you're doing this, please include how many rentals you currently own. Thanks!



Real Estate Investor · Ohio


I live off my rentals. I have several dozen.

If you do everything right, you might have a cash flow of about $100 per unit per month. If you do all the management and maintenance yourself, that might add another $100 per unit per month. So, if you want to live off your rentals, take the amount of money you need per month by either $100 or $200 (depending on whether you're doing the management or maintenance).

Good Luck,

Mike



Real Estate Investor · Charlotte, North Carolina


I live off my rentals and I have several dozen. I own many out right free and clear and that makes the ability to afford to do things that know one else does. You have to start some where Ryan and many are trying to get there, but it takes time and patience.

As stated earlier buying where others are not willing allows me to live the life that others are dreaming about.

I wish you success, but as I have said to you and others before you have to jump in and start with that first one.

SUCCESS BREEDS SUCCESS



Rehabber · Santa Clarita, California


I live off of real estate investing, but not just rental income. I also flip properties via wholesaling, retailing, rehabbing, etc.
I also have various other income streams in the real estate investing world.

If you want to live off of rental income, you will need to first, start, then continue the process. It is not a get rich quick program regardless of what gurus preach, it takes time, effort, patience, and determination but can be done.


Small_be_logoWill Barnard, Barnard Enterprises, Inc.
E-Mail: [email protected]
Website: http://www.barnardenterprises.com
http://www.InvestorExperts.com


Real Estate Investor · Los Angeles, California


For the people who are living off their rental properties, how many years have you been investing seriously?



Real Estate Investor · Ohio


six



Real Estate Investor · Studio City, California


I don't live on my rentals cause I stared late, but I plan (And hope...) to buy 3-5 low-cost SFR every year and buy them cash. I hope in 10-15 years to accumulate enough so I can retire comfortably. In the past 15 months I sort of met my quota. Bought two SFRs with mortgage and three without.



Real Estate Investor · Rochester Hills, Michigan


I am in the same boat as Will - full time investor but my income comes from rentals / seller financing / flips / wholesales / rehabs blah blah blah.

Owning homes free and clear sure does help get the cash flow up (lots of debate here on that topic - not trying to rehash it here) but as Douglas said you have to start somewhere and that means your first $100 a month home :)

Getting started is the most important thing - Kel just posted in another thread about her and her hubby getting their second home - so just like they are - get started and build house by house.



Real Estate Investor


BTW, I know the notion of becoming a full time real estate investor is an enticing one, but I strongly suggest you meet with your real estate mentor(s) and accountant to determine if you can quit your JOB.

Far to often, an investor will go full time before he or she is really ready to do so financially.



Real Estate Investor · Garland, Texas


I don't take any cash out of my REI. I want to build critical mass and a "rock solid" balance sheet first. If the plan works (God willing), I'll be in a position to live off it in 18 months, but want to wait longer to help it grow faster.


Jon Klaus, SellPropertyFast
E-Mail: [email protected]
Telephone: 214-929-6545
Website: http://www.facebook.com/Buttermilks



I have now lived off of my income properties for 3 years. You have to reach critical mass before retiring, and for me, that was 5 properties paid off free and clear. You might think just a couple could provide that, but there are so many expenses it is crazy! I did not quit my job until I even had a partial interest in a 6th property, which allows me to have very low living expenses. Remember property taxes, insurance, city taxes as well as upkeep. I am now looking at buying distressed properties and getting them approved for section 89 housing. The number crunch looks great, but if anyone out there has experience in that area I would love to hear about it.



Real Estate Investor · Portland, Oregon


I could live off my rentals if:

1. Paid off 80k with proceeds from previous sales.
2. Could live on $1825 per mo-3650x 50%
3. Moved to Mexico and ate cold cereal for breakfast and a 6 pack for dinner.



Accountant · Garden Grove, California


I am currently living off my 30 rentals. My wife works, mainly because of the benefits and she LOVES her work as an RN. I have been applying for jobs because I am bored at home. I don't have the team for flipping and flipping in my area requires a minimum of $500,000 in cash (or HML) to play in the game. My daughter's BF works for a professional flipping company in the Inland Empire and even they are having a hard time selling their properties. They buy 15-20 a week.

So here I am, doing gardening. LOL



Wholesaler · Valley City, Ohio


That is an absolutely fantastic question, living off of rentals can be very lucrative, or it can be the fast track to bankruptcy! I make my living entirely off of real estate investments,but not off of rentals alone. My personal game plan does not involve a bunch of leveraged properties, I would much rather be debt free on my portfolio. This goes completely against what most folks will tell you, but over the past 15 years I have seen a lot of good people go down the tube's because of over leveraged rentals.
Now to more specifically answer your question, how much income are you looking to replace?If you do not have a ton of personal debt, you could live off of five or six paid for single-family homes. One of the biggest problems is, once you leave your full-time employment, it is going to be very difficult if not impossible to get mortgages on investment properties.
Personally, flip some contracts, take that money, by free and clear real estate! just my opinion, good luck!!!



Landlord · Seattle, Washington


I could live off of my rental properties right now, but choose not to. I'm still in the build up stage and plan to work and invest another 10 - 15 years.



Accountant · Garden Grove, California


RobTheHouseGuy is correct. Which is why 25 of my 30 properties are Free and Clear. And 3 of the 5 will be paid off in less than 10 years. So a fairly strong position.



Real Estate Investor · Portland, Oregon


Sounds like the F&C gang rules. This seems to go against the 30 yr mortgage group or does it take 30 yrs? Having planned on paying off everything quick-it is harder than it sounds IMO.

I'd thought the free and clear people were buying 15k hses but believe Mike M is buying a little higher end.

Maybe better stop playing on that cash flow and get back to basics.



· Norfolk, Virginia


I have 11 rentals fully paid for and bringing in nearly $100k a year free and clear, but being retired USN after 33 years I get a nice little check to retire on, so the rentals just bring in a little extra spending money... giving me time to spend my life playing with real estate lead genertion for others for free..



Real Estate Investor · Houston, Texas


I would be interested to hear from those who own their properties F & C how you went about it. Was it primarily by flipping and getting the cash up front, or putting your cash-flow from the rent back in to the note.




I have been buying rentals free and clear for the last few years. What I do is keep my expenses low (I try not to eat out or engage in general consumerism - and I have now realized that my gf that just moved in with me is more self sufficient than I realized and I am actually making money off cohabitating with her) and basically reinvest as much of my rental income and my day job income (which is still quite higher than the rental income annually - but not for long). I hope that in a few years I can have prop managers do all the work while I check my bank acct online from where I wish to be at that moment.





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