Possible long post.

Over the past several years I keep meeting people who are successfully invested in real estate.  Some use the cash flow to fund their hobbies but at least 2 of the people have completely replaced their W2 jobs and reap the benefits of their investing.  Aside from the replacing their W2 income they also "haven't paid income tax in decades."  Now that caught my attention because as a straight W2 earner with essentially zero write-offs I've been paying 6 figures per year just in taxes.  Absolutely brutal!!

I'd be very interested in making a move towards rental income with the ultimate goal of replacing my W2 earnings.  Definitely not in the near future but as a goal.  I have a property management company I am familiar with (manages 600+ doors) and can come up with a bit of cash.  Cash flow would be ideal so I am thinking a multi family or apartment might be the best way for me to go, maybe even commercial property with the idea of scaling?

Funds can come from a variety of places but I'm even thinking of taking some from my 401k roll over. Sure it's gaining a decent return but down the road when I start to withdraw the tax implications will be there. So, why not take that money now, pay the 10% penalty but be able to use the depreciation from the REI to offset the income from the withdrawal. Just thinking out loud here. Even have a HELOC available, etc.

The one gentleman I met worked the numbers backwards.  Needed to replace his W2 of 300k per year.  So he did figured he'd need X amount of doors to have passive income of 25k per month.  Took him a bit but he did it.  

I'm in the Philadelphia suburbs and would probably prefer to invest locally and at least being able to drive by and physically see my investments.   

Thoughts? Ah, the elephant in the room. I could come up with about 400k not including HELOC, but absolutely would be interested in spending less than that.

I welcome all thoughts and comments!