Poll: How long did it take you to quit your day job from passive rental income?
Curious to see what the average time frame is. It seems to be about 7 years from what I've seen so far.
1 month. I made the decision to do REI full time, and gave my 1 month notice at work. I wanted to take the option of failure off of the table. It is too easy to put things off when you have a guaranteed paycheck every 2 weeks. I had to make life uncomfortable. I started a daily blog to track my progress. This puts even more pressure to succeed, as the whole BP community will hold me accountable. I was also fortunate to have funds saved from some stock investments.
Originally posted by @Reed Starkey:
1 month. I made the decision to do REI full time, and gave my 1 month notice at work. I wanted to take the option of failure off of the table. It is too easy to put things off when you have a guaranteed paycheck every 2 weeks. I had to make life uncomfortable. I started a daily blog to track my progress. This puts even more pressure to succeed, as the whole BP community will hold me accountable. I was also fortunate to have funds saved from some stock investments.
Any regrets or lessons you'd be willing to pass on to those about to do the same?
I don't recommend this path for anybody else. It is very risky, but I had to do it this way for myself.
Originally posted by @Account Closed:
Originally posted by @Reed Starkey:1 month. I made the decision to do REI full time, and gave my 1 month notice at work. I wanted to take the option of failure off of the table. It is too easy to put things off when you have a guaranteed paycheck every 2 weeks. I had to make life uncomfortable. I started a daily blog to track my progress. This puts even more pressure to succeed, as the whole BP community will hold me accountable. I was also fortunate to have funds saved from some stock investments.
Any regrets or lessons you'd be willing to pass on to those about to do the same?
None yet, but this was in March this year. I have completed one flip, and bought my second flip. I am also partnered up with one buy and hold I just closed on today. Like I stated, I don't recommend this for anybody, but I knew work would take priority over any investments because that was what paid the bills. I will continue to blog about it if you care to follow.
I am not really great at story telling, but I try to get all the facts in there.
#2 Contractors Contributor
- Severna Park, MD
I dont plan to quit my day job , its fun and I make good money , the main benefit is I run the service truck and estimates , I am in different neighborhoods . Thats how I find my deals.
I am not a good example, since in my 40 years I've never had a traditional full-time job. I've always been involved in some type of entrepreneurial activities. Having said this, I've been full-time in the RE industry for about 4 years. Cash flow, when it's real, is a powerful thing in many ways... "Real" being the operative word, and this thread is case and point:
Keep your jobs boys and girls, until you really figure out how this really works...:)
Great question,
Our goal is to replace my husband's income with rental income. We started 2.5 years ago and after we close on properties 4& 5 (under contract now) we will be at 44% of that goal. Kelly
3 years (39 doors)
to live on the rentals, they have to be paid for. Or at least the first 30-50.
We could live on the rentals now but I have other business interests to supplement our household. We finance all rentals on a 10 year AM so we basically babysit rentals until they are paid for. We started 12 years ago. Buying cheap rentals. All SFR's and small multis will pay off within 5 years, our larger multis will pay off in just under 10 years. After that-- gross monthly rent around $45K. That will be fun to give away.
My plan is 7 years.
After a few fix and flips for the first couple of years, start buying and holding to get ideal cashflow properties.
I figure that once I get SFH (5) and multi-family (20 doors) (or a combination thereof) cashflowing, I can think about letting go of my day job. I'll need the time to manage all those properties, from a hands-off perspective, and keep searching for other deals.
I make too much money (though the govt takes a HUGE chunk) to not keep working for now. However, a few hours outside of work every day should give me enough time to hit it hard and fast. If I feel I can let it go sooner, that depends on the investment (as a whole) bottom line.
I'm 50 now, so by 60 for sure. 57, great. Sooner, hallelujah. 2 years, not impossible, but highly improbable. Unless I had a private investor that gave me good rates and unlimited cash reserves, it will have to be the 7 year plan for now.
My business plan is for a minimum of 126 units in five years and that will create enough income to retire from my job.
Best of success!
I'd like to also ask what the source of financing was for the first few deals? How many of you are financing it through your day job, vs. finding private money lenders?
I've always been self employed, wife works the hourly job. I'm now moving into Real Estate full time but not letting go of the other things I do including stock market investing. I think it's doable in 10 years for neither of us to have to work, that doesn't mean we won't. If I get things rolling in a few years my wife may leave her job and join me.
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#1 All Forums Contributor
- Real Estate Broker
- Lake Oswego OR Summerlin, NV
to all that think owning rentals is a retirement plan think again its just another form of a job. how you can think it retirement income eludes me.. LOL
yes you work for yourself but you also create your income through your hard work..
its trading one job for another.. this idea that you all of a sudden don't have to work for a living is just fantasy LOL..
However your now working hard for yourself I get that and agree I have never worked for anyone but myself since I was 16 and that's 42 years ago.. so I get it.
Originally posted by @Vincent Crane:
I'd like to also ask what the source of financing was for the first few deals? How many of you are financing it through your day job, vs. finding private money lenders?
Money saved from day job funded first rentals. Subsequent rentals fund subsequent rentals. Always have some properties owned free and clear. If someone had to go all in without any of their own capital it would be tough.
I started investing in 2001 and quit my day job January 1st 2014, so that would be 14 years, however, everyone has a different standard of life that they are willing to accept. I had to replace a six figure income, otherwise, I would spend most nights sleeping on the couch. Additionally, since I wanted to retire on the income, I wanted to own my rentals free and clear.
-Christopher
I originally thought it was going to be 10 years when I started, but I did it in just 3.5 years. I saved a lot from my job to start investing and the first 2 properties were through partnerships and bank financing. Then I used peer to peer lending to buy 3 houses in cash. The rents from those paid down most of the loans while I saved money to invest in another 4 partnership properties. Then with the additional income I could show I got another bank financed property with just 15% down. Then I left my full time job. I sold one of my properties and bought two more in cash. I also took a loan from my 401k to buy more properties.
So I did it using several methods of financing. Whatever gets the job done; if I wanted a property I had to get the money somehow. Saving for it is the best way. Personally I like having things paid off.
You're an animal! Thanks for the inspirational sorry.
Awesome posts guys. who else? I know there's a bunch on here
I started in 2010... took a break in 2014 to get married, renovate my own house, focus on my day job, save some money, ect. Currently have 11 SFR's and looking at larger mutli-families. When I hit 80 I'll walk away (happily). I'm thinking 5 more years but I'm planning on 3. I just don't know how I'm going to make it 3 more years behind my desk.. :(
I also took a loan from my 401k to buy more properties.
How did that work for you?