8k/ month to quit my job?

Multi-Family and Apartment Investing
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8k/ month to quit my job?

Gaston Barua
Investor · Palos Verdes Peninsula, CA · Member since 2015 · 41 posts · 6 votes

Hello BP,

I am beginning the process for the purchase of my first Multi family investment to kick off my goal of reaching 8k in cash flow/ month. I have calculated that at $250 Net Cash flow / unit I will need 32 units to hit that goal. 

My plan is to 1031 exchange my multi family properties after a couple of years to purchase an apt complex.

That being said, My question is: What suggestions can you guys give to make this a reality sooner rather than later? Whats a realistic timeline for executing a plan like this?  Or is this plan not the most efficient way to achieve this? Can this be done in 2yrs?

Thanks a Million!

Gaston

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y

just don't quit your job.. keep stacking up the rentals you will soon find that 8k a month won't be enough especially in PV... as we make more we spend more.. we get married we have kiddo's we put kiddos in private school we save for collage.. we buy nicer cars etc etc.. some parts of the country that's a nice number west coast.. not so much.. as your spending habits mature at the same rate you age.

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  • MANUEL GONZALEZ
    Investor · Miami, FL · Member since 2015 · 9 posts · 1 vote
    9y

    excellent information

    0Reply
  • Douglas Orr
    Rental Property Investor · Greensburg, IN · Member since 2016 · 65 posts · 40 votes
    9y
    I too thought that $8k a month would allow me to quit my day job but as I get closer to achieving this I worry that the banks will stop working with me because I lost my "guaranteed" paycheck. I definitely do not want to stifle my growth because I retired a year or two too early. My new retirement monthly income is $15k to $20k (I'll decide as I get closer). Best of luck!
    1Reply
  • Gaston Barua
    OP
    Investor · Palos Verdes Peninsula, CA · Member since 2015 · 41 posts · 6 votes
    9y

    Thanks everyone! This is more great info than i expected! I will adjust my sights and get after it!

    Regards,

    Gaston

    0Reply
  • Jennifer Lee
    Real Estate Broker · Gibsonia, PA · Member since 2013 · 828 posts · 260 votes
    9y

    wow good question

    When I started out we had a number and a plan.  I think my number freedom number was 15 units. 

    So yesterday I was excited, we did a 1031 exchange last year, and we are at 14 units.  

    So we did our freedom numbers again with TODAY'S numbers.... hahahah we need 30 units! I m only 50% of where we want to be now.

    SO lesson, is the plan keeps changing, I like to do 5 yr plans, we are now in our 15th yrs as investor.  and the market had ebbed and flowed drastically in my time, we need to be able to move with the market.

    What suggestions can you guys give to make this a reality sooner rather than later? 

    KEEP at it, look for value add and cash flow deals for buy-hold.  Flip to afford more buy-hold

    Whats a realistic timeline for executing a plan like this? 

    It depends on your motivation, I bought my first property in 2001, second in 2003, third 2007, fourth in 2008.....I found BP and I bought a property a yr 2010+ and I bought 3 properties last year hahahaha It's BP, it's experience, and I am now a realtor. so I m more comfortable.

    BUT I always have a 5 yr plan.

    Or is this plan not the most efficient way to achieve this? Can this be done in 2yrs?

    I went from 1-2 unit (11 yrs), to now owning 14 units (in a span of 2 yrs),  the 1031 exchange had a lot to do with it, but again it's timing and numbers

    1Reply
  • Jacob M.
    Investor · Houston, TX · Member since 2016 · 5 posts · 0 votes
    9y

    Great thread.  Appreciate all the insights!  

    0Reply
  • Andrew E.
    Investor · Member since 2016 · 54 posts · 21 votes
    9y

    These are all really great ideas. It would be amazing to quit our job if that was your goal. My goal also is to gain financial freedom but it's hard to turn down a guaranteed paycheck. It would be nice to know all the hard hours I put in 100% goes to what I want it too (investments and such) rather than bills and living expenses. That would be a good feeling for sure. Good luck on your success.

    0Reply
  • Jonathan Gobbo
    Real Estate Broker · Tulsa, OK · Member since 2016 · 38 posts · 18 votes
    9y
    One thing I haven't seen mentioned yet (I did skim through the majority of the posts) is look to purchase in areas with better numbers. We have quite a few California investors invest in the Midwest because their returns are so much higher and our price per door is way less. Hire the right property manager and just collect the check each month.
    1Reply
  • George P.
    Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    9y

    I have 35 and a great job. My wife has an even greater job -2.5 times greater. We cash flow like crazy and I guess I am too greedy cause I laugh every time I think of quitting. 

    I'll be the first one to say you can't and won't do it. Come back here in two years and admit I was right. But tag me cause won't follow the thread

    How's that for motivation?

    2Reply
  • Michael R.
    Investor · Cary, IL · Member since 2014 · 124 posts · 95 votes
    9y

    This is a great thread and I couldn't agree more with what has been said here.  

    You really need to love this business and be the type of person who enjoys the act of fielding new or recurring challenges.  If you can pair that with a love for your W2 job then you're really living a great life.  If you hate your job, find another one that you're willing to hustle for and channel that growth into your real estate endeavors.  Every promotion, every bonus, opens new opportunities for your "side business" to grow. 

    I'm new to this business and even with some great systems in place the word "passive" doesn't accurately describe my months.  You have great months that are relatively quiet, and others where you're very hands-on.  I can't imagine working a job I hate and still having the fortitude to press on when tenant or asset issues pop up. 

    Find a job you love, grow your RE business at your own pace, and someday you'll be pulling in enough from your business to have the peace of mind that you could live financially free if you had to.

    0Reply
  • Rashad K.
    Flipper/Rehabber · Saint Paul, MN · Member since 2016 · 120 posts · 98 votes
    9y
    Listen to podcast 197, about the Brrrr method
    0Reply
  • Eric P.
    South Jersey, NJ · Member since 2014 · 154 posts · 50 votes
    9y

    This is an awesome thread, wanted to bring it back to life. I'm lucky enough that my wife has a great government job that covers all our bills, holds the insurance, and comes with an amazing pension. I also have a good paying job but no real perks, all the extra $ coming in right now from my job is basically to start investing in real estate, IRA, Vacations, Fun, etc. Once we start buying real estate I could probably quit my job once we hit $2,000 cashflow. It would basically be the same at the finish line if I kept working but never bought property.

    The thought of quitting seems to make more financial sense when you consider the savings.  High tax rates, child care costs vs staying home, commuter costs, time to grow RE investments.  In our area child care alone can cost over $1,200.  Like many others here have stated I doubt I'd leave a W2 job before the age of 40 even if I could.. My long term goal is $20k month cash flow so wife and I do not need to work.   But it is nice to know I wouldn't need that job if push came to shove.    

    0Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    9y

    @Gaston Barua

    Hi Gaston,

    Make it your "Massively Transformative Purpose" (Peter Diamandis).  Focus on it and make it your passion.

    If you are starting with little education or network, I think 3-5 years is a reasonable window.  If you want to speed up the process, I would find a coach to help you shorten your learning curve to get you there quicker and with less mistakes

    Gino

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    0Reply
  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    9y

    @Gaston Barua  - If moving out of the Los Angeles area is an option for you, then you could see yourself achieving your dreams faster. Dollar goes a long way in other parts of the country compared to California, and especially the LA area. 

    Just a thought !!

    Lot of good advice in the thread. Didn't read each and every response, so sorry if I am being repetitive.

    0Reply
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