Rental Property Investor · Seattle, WA · Member since 2014 · 1k+ posts · 1k+ votes
Mine was initially to build financial independence. I did that, but am still in the grind trying to build more wealth.
With full time work, grad school and a rental business, I'm wearing out. Last night I thought, what would my ideal life look like?
It was not buying more real estate and growing the business. It was mostly cashing out (not all though) and buying a homestead to live and farm on and take it easy.
Gave me a new perspective. Sometimes it's not about buying 100+ units, so much as having enough passive income to go live the life you want to live, in your limited time on this planet....
Come to Michigan! I just indulged myself by buying 6 acres for dirt cheap as a "present to self" with proceeds from a successful flip rather than reinvesting in a rental and we're going to build a nice homestead there so I can hug bunnies...I know exactly how you are feeling!!!
Come to Michigan! I just indulged myself by buying 6 acres for dirt cheap as a "present to self" with proceeds from a successful flip rather than reinvesting in a rental and we're going to build a nice homestead there so I can hug bunnies...I know exactly how you are feeling!!!
My goals are very similar to yours (becoming financially independent) and I'm in the same situation as you. I'm in an MBA program, working full-time, and running my rental/flip business. It can be really tough, especially when balancing family commitments too.
I think what I'm most concerned about is not stopping when "enough is enough." My goal is to be completely financially independent but I worry that when I passively cash flowing, for example, $10,000 per month, I'll say "well I should probably get to $15,000" or something. I just feel like I'll know what the grind is like and I won't stop pursuing bigger and better.
Question for you - if you're financially independent, then why not stop working?
My goals are very similar to yours (becoming financially independent) and I'm in the same situation as you. I'm in an MBA program, working full-time, and running my rental/flip business. It can be really tough, especially when balancing family commitments too.
I think what I'm most concerned about is not stopping when "enough is enough." My goal is to be completely financially independent but I worry that when I passively cash flowing, for example, $10,000 per month, I'll say "well I should probably get to $15,000" or something. I just feel like I'll know what the grind is like and I won't stop pursuing bigger and better.
Question for you - if you're financially independent, then why not stop working?
Because when the getting is good, why stop? Also, it's not a ton of cash flow relative to my current income. I live cheap and simply, but giving up a 150+K a year job to live off a 3K a month cash flow is not something I want to do yet despite being tired and considered FI. I make most of my money on the appreciation right now, about 150K a year there, and another 20K from mortgage pay down. If I found the ideal cabin out there on some acreage within a decent drive to the city, I might just buy my own little farm and just homestead. Don't need a lot to enjoy life, just quiet and privacy. Have had farm animals and a mini homestead before. Loved it. But right now while I'm still able to get high paying jobs (getting harder though as I get older) I figure I might as well get a little more money. If I tough it out for 5 years I'll be worth 2 million. Right now just one. I figure tough it out for 5 more years and have that extra safety blanket. But on the other hand, I've been on my deathbed due to major health issues twice in the past 5 years. Survived an illness that kills more people than AIDS, Cancer and car accidents COMBINED. That's right, I survived pulmonary embolisms twice.
Financial independence. Once you have that you can do what you enjoy AND grow the income at the same time.
I've considered that, since my investments would keep growing even while living off of them, however; the opportunity cost is too high leaving a high paying job so early. Not walking away from a 150+ K career that is growing prematurely. I figure 5 more years, then retire. I'll be worth about 2 mil by then. Currently about 1 mil. And even after I retire it would keep growing. The thing is, FI is not enough these days. I want to have a huge buffer for lawsuits, medical issues, lifestyle changes, etc.
My long term goal is 33 free & clear rentals. This is a bit more than I need in net passive income. 33 is way easier to manage than 100. Debt free is way less stressful in the next recession.
Short term goal is 5k net passive income. This will set us free financially. You may be thinking there's a big stretch between the two goals, but the long term accounts for kids, giving back, handing off to PM, inflation, healthcare, hiccups, etc.