5/25/12 IMPORTANT ANNOUNCEMENT: MAJOR BP Update Next Week!

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Forums » Off-Topic » I have enough now to retire in 5 years!

I have enough now to retire in 5 years! Subscribe to I have enough now to retire in 5 years!

14 posts by 12 users

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Real Estate Investor · Lincoln, Nebraska


We started investing 5 years ago… and we're really proud of our accomplishments so far. In 5 years we went from being tenants to owning our residence plus 19 rental doors! Both my husband and I still have our full time jobs and also manage all of our properties… final goal….retire early and keep on investing on the side. We have decided to stop buying and concentrate on paying down the debt acquired with real estate. According to my calculations…in 3 to 5 years we should have enough net cash flow to retire. I'm excited about this new focus. The challenge… I'm an entrepreneur and I will have a very hard time staying put and not trying to keep on growing!
I'm excited to share this with all of my BiggerPockets colleagues…as we all have similar goals and aspirations! … Thoughts?
:D


Real Estate Investor · Fishers, Indiana


Ana, that is fantastic to hear! Congratulations to you and your husband. I love how it was something you both built the portfolio together. You should blog on here about the journey. I am sure its a fascinating story!


Rehabber · Fort Wayne, Indiana


Ana,
That is fantastic.
Keep the focus.
Others need to hear of what can be accomplished.
Congratulations


Private Money Lender · Omaha, Nebraska


Congrats, Ana! That is really great work!


Real Estate Investor · Dallas, Texas


Great job so far! Why not be prepared to opportunistically buy great deals that fit in very well with your current portfolio. Don't plan to buy, but be on the look out for something really extraordinary that comes along.

Jon K., VentureNet
E-Mail: jklaus@vnetinc.com
Telephone: 214-929-6545
Website: http://www.caddostar.com
Traveling to Dallas? Check out our ranch cabin getaway. www.caddostar.com


Landlord · Seattle, Washington


Hallelujah!!

It' a great feeling to know that you don't have to worry about your family's future. You'll have to share your plans and experiences with all of us.


Real Estate Investor · Lincoln, Nebraska


Thank you all for the cheers! I think I might find the time to blog about our experiences and where we're headed. Maybe a 2011 goal !
We are thinking of retiring in South America...we will see how our plan progresses.
And Jon, we will be open to great opportunities...if they arise we will not turn our back.


Real Estate Agent · Lenexa, Kansas


Congrats! That's awesome!


Real Estate Investor · Springfield, Missouri


Congrats! You can see the light at the end of the tunnel and it's not a train! (?) Make sure that retirement means more of a fixed income.

I have seen several of my friends retire on rental income, but it doesn't necessarily stay up with the cost of living, since rents can't be increased, in some cases, quickly, rents lag.
Shooting for 20% more than your needs is better than hitting a figure today and saying I can live off that.

And, don't forget maintenance, 15 years into retirement holding older properties may need attention. Just two aspects that retiring investors should address, IMO.

But, congrats, it sounds like you are well on your way, it's a great feeling isn't it? (!)


Real Estate Investor · Audubon, Pennsylvania


Originally posted by Financexaminer
...
I have seen several of my friends retire on rental income, but it doesn't necessarily stay up with the cost of living, since rents can't be increased, in some cases, quickly, rents lag.
...

No doubt that this does happen in some areas; I have been told Detroit is an example where this happened. Rents in Detroit actually went into decline with the abundance of foreclosures there, because those fresh foreclosures sold so cheaply that landlords could hit their target cashflow with lower rents - so they lowered rents to attract tenants thus leaving other landlords who had paid more previously now stuck with trying to find tenants in that declining market.

But in a healthy area, rents will be typically increasing by a "cost of living" factor - 3% to 4% in most years. Justifications for rent increase should also be included in your rent increase letters. Example: Post Hurricane Katrina insurance rates increased on my rentals, so that was used as part of justifying the rent increases. Things like taxes (do they EVER go down), maintenance, utilities - in short, most typical landlord expenses - tend to rise over time, and so you MUST continually raise rents so that you don't "lag".


Real Estate Investor · Lincoln, Nebraska


Well... we do think that rents will go up with cost of living increases. Also, we are looking to retire in South America where cost of living is lower - We will also be watchful of our situation and not blow it all in a few years ! There is a lot to watch and control and manage...but those will be details as we would be retired and still young !


Mobile Home Investor · Spanaway, Washington


Like you said - you will also have to control yourself from getting caught up in the fever of investing and end up getting yourself overextended! We have about the same issue - one was greedy - now has cooled down and now other one is greedy - wanting more and more properties depleting reserves to zero. If something happens then everything could go under! Stick to your plan - and do not get over extended!


Real Estate Investor · Los Angeles, California


Congrats!


Real Estate Investor · sioux falls, South Dakota


Wonderful job Ana. You had a plan and made it sensisle and easy. Keep it up. I still have an original scratch sheet with the properties I owned, how I'd increase rents and which ones I'd pay off, or trade. When you reach that point, You can start a parrallel universe! I've lived in Brazil and also spent many months in MX. Don't rule central america out yet, imo. Congrats!!! Rich




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