How many people do actually really live 100% off rental cash flow?

[Marcus Auerbach]

That's the big dream: passive income, property management, no alarm clock, no office to go to. Gone fishing on a Tuesday.

I wonder how many people have gotten to the point where they actually live that dream? Or do you still work on something, while your RE portfolio is doing it's thing?

There is the financial side of it: at what point can you afford it not to work and basically retire based on passiv income? How much equity does it take (I think a better metric than # of doors)? And how do you handle large capex like new roofs or kitchens? 

And then there is the mental aspect: are you actually satisfied with what you have built. Do you feel content to just leave it at that and stop growing something? Or do you still feel the itch to build? 

I think a lot of investors are entrepreneurs at heart and not happy when they can't work their butt off. This is exactly the trait that let them hustle relentlessly when they built their portfolio in the first place. Can you just stop and go fishing?

[Bill B.]

I do because I live in a much cheaper market than Chris. You can live quite well in Vegas on a little over $200k/yr.  it took 10 homes and 10 years but the very low cost of living and a simple life made it relatively easy. Insurance is “cheap”, property taxes are VERY low, and the lack of state income tax is a bonus 10% tacked on to your income. 

Spend the beginning buying new primary homes that you move out of and rent to get the lower interest rate, not necessarily the lower downpayment. Unless you need that. If at all possible get 15 year mortgages. Again, lower your interest rate even if it increases your payment. The primary home and 15 year loan might save you more than a point. While that $5k/yr every year won’t come in cashflow, it is real money. Accumulate the number of homes you need. Then sink all the cashflow/profit back in paying them off. If you have a pension, a working spouse, or live in or move to an even cheaper market than me 5 homes should bring in $100k/yr. MUCH more than the average retiree. 

I chose 10 because those were the cheap and easy loans and I didn’t need more. I did it for freedom and because the idea of hoping I died before I depleted my retirement accounts scared me. I’m a saver and will never touch the retirement funds I wasted the first 10 years of my life accumulating. I met my wife too late for us to have kids. But I can’t even imagine working until you’re 50 or 60 if you have kids. They say you’ll spend more time with them before they’re 18 than after, no matter how long you both live. But the real number is probably 14 or 15. Enjoy them while you can. It’s one of the few regrets I have.  

Don’t compare your journey to anyone else’s. And Good luck.