My Current Path to financial freedom-Weighing investment options
Age-34, Single in Arizona
Current Net worth-$24K USD in Stocks, 10K in Roth IRA. *I am just starting to put money away as I cleared all of my debts in the last half year.
Debt-$0
Salary-$75K gross, which is $52.5K NET + an annual bonus of a few thousand with excellent benefits-health insurance premium, phone bill, gas/grocery discounts, and 40% of my meals are covered.
Monthly/annual Expenses-Very few expenses right now...Groceries are minimal, gas/car insurance only 7 months of the year, and I live a very simple life. Car is paid off and has life in her. I'd say over the course of the year, I spend MAYBE 17-18K MAX.
I am able to effectively save $40K USD per year like clockwork.
Living situation-This is where it gets interesting...I live 100% rent free on my boss' property for 4-5 months of the year. During this time of year, my monthly expenses go all the way down to $300-$400 per month. For 7-8 months of the year I have rented in the past, and with my other expenses this breaks down to 2K per month-MAX...
Life expectations-I definitely see myself getting married, however having a kid/s is a choice I have not made yet. IF I do though, it would be one or two MAX. If I don't have kids, I can see myself living a very inexpensive lifestyle (2K per month with no medical problems)-but they are the one remaining mystery that will drastically effect my FIRE journey...However, I am grateful to know that I will eventually have an inheritance of at least $200K,if I had a wild guess-obviously I hope that day is a long, long way away of course :( The decision to have kids or not isn't a monetary one, it is based on a lot of different thoughts. I am also not expecting or counting on said inheritance. I have told my parents many times to live it up and spend their money, and I genuinely hope they do since they have worked so damn hard for it!
Master Plan-Career Outlook
I am extremely interested in real estate. I have currently been reading up on it for hours a day, as it is very intriguing for someone in my position. I can see myself realizing my FIRE goals using this vehicle-and that is my current master plan. More specifically, I see myself making one of two decisions with real estate in the next year or two....Which leads to both of my next questions about my plan.
With rent being one of my only primary expenses for 7-8 months of the year, I would LOVE to cut that expense out altogether by investing in a 4-plex. Right now, I am not far from having the money to do so IF I utilize an FHA loan and use a 3.5% down payment...OR maybe wait another year, so I could put down a proper 20% down payment to avoid mortgage insurance etc. I would be gone 4-5 months of the year, so a property manager would be required for part of the year-but MAYBE I could offer up my empty unit to the property manager while I am gone for the 4-5 months. Hmmm-otherwise, I could rent it out if I get lucky.
Am I smart to do the FHA loan in a few months when I would otherwise have to start paying 1K/month for rent again (and pay higher mortgage payment and mortgage insurance), or am I better off waiting a year or so, and saving up for a 20% down payment on $400K rental property?
*I have played with the idea of partnering with someone who has a lot of rental property experience my first time through, OR learning all the I can for a few years and saving up to buy a four-plex in cash...
My job offers a 401K (no match). Am I wise to invest in this 401K while I still can (before getting into real estate, OR am I better off aggressively investing up to $40K per year in real estate rental properties until I have attained financial Independence?
Am I crazy to think that I can become financially free by the time I am in my early 40's? (Retirement location-part of year Thailand $1k per month-3-4 months per year. 7-8 months of year AZ, 2K cost of living with no kids or medical bills.)
*I am not opposed to working for part of the year or part-time after I have attained FIRE. Maybe a simple position at a grocery store for a grocery discount and to stay busy :)
I know this is a lot of food for thought, and a lot to take in haha ... Thank you all for reading, and to those who offer advice-good, or bad-it is all appreciated! Thank you!