What is your FREEDOM number (#)?

Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes

I am a relatively new but very active newbie to REI. I have purchased my first investment property which I am in the process of flipping right now. I listen to BP Podcast in my car on my commute to and from my 1.5 hour one-way commute to my W2 JOB. I have listen to several back to back Podcast that have mentioned or referenced their Freedom Number. It makes me wonder how and what everyone's Freedom number is and if you don't know maybe we all can learn through this post and many like it how we might be able to get to ours. Thanks as always BP Nation, I cannot thank you enough for the knowledge and insight you have bestowed upon me up and to this point. Here is to wishing everyone a successful 2017 in your REI ventures?

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Rich Vogel

Rental Property Investor · Milltown, NJ · Member since 2014 · 131 posts · 130 votes

My freedom number was 80,000 a year in cash flow. I am currently at 79,200 and I just put an offer on a house that was accepted. So I actually gave my two weeks notice two days ago from my day job and will be a full time investor. I know everyone is different but to me the number didn't make as much of a difference to me as the why. My why was spending more time with my wife and two kids who are 6 and 4 years old.

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Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
9y
$40,000/mo. Net.
@Tony Wooldridge
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Tony WooldridgePro Member
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Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Brandon Sturgill, an intrusive question which you most certainly are not obligated to answer, but may I ask how is the progress to that # going so far? Thanks for sharing!
2 Reply
Samantha Klein
Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
9y
7k a month for a very comfortable life. I'm about 1/3 of the way there.
19 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Samantha Klein, Awesome! Have you known this # for a while or has it taken you years to figure it out through the trials and tribulations? Thanks for sharing your # with us!
2 Reply
Samantha Klein
Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
9y
My number has changed a few times in the last two years. I basically added up all of what I think my future expenses are going to be for the life I want to live and doubled it for extra padding. I can always buy another rental if I want a pay raise. I'm 24 with 5 rentals, started two years ago
38 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Samantha Klein, Awesome, thanks once again for sharing and I have no doubt you will reach your goal. Best of luck to you in reaching your #!
1 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
I forgot to mention if you haven't seen/heard the Podcast 151 with Clayton Morris, I highly recommend it, GR8 show. Thanks Clayton, Brandon and Josh!
6 Reply
Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
9y
50k a year to quit my job. I'm living on less than that now and can still put aside money for investing, so at 50k income, I'd feel comfortable that I could continue to grow it further without having a boss.
Or, $1.25 million net worth.
9 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Gwen Fyfe, sounds like you are putting in the necessary work to live on less and find a way to still invest, that is sweet. Keep it up and I have no doubt you will reach your goal. Thanks for sharing your # with us!
1 Reply
David Grabiner
Investor · Chattanooga, TN · Member since 2016 · 146 posts · 108 votes
9y
@Gwen Fyfe You can do a lot better in RE investing than than just counting on the 4% rule of net worth. If you invest right you can hit 50K per year with a much smaller net worth than 1.25 Mil. That calculation is for people who have their net worth invested in index funds. Keep buying those multi-families and you will be at 50K sooner than you think.
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Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
9y
@David Grabiner Oh I know what it is, thanks! :)
I'm focusing on real estate because it is faster. But because of the 4% rule, if I suddenly found myself at $1.25mil in other investments, I would be looking at quitting my job. Still a freedom number - different reasons.
Ideally, I'm aiming to be in a place where both my real estate and other investments are at that level.
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David Grabiner
Investor · Chattanooga, TN · Member since 2016 · 146 posts · 108 votes
9y
@Gwen Fyfe Sorry I thought you were saying you needed that amount of Net worth in real estate. How to do you balance the two different investment strategies, how do you decide where to invest your money? I'm so un balanced I can't even bring my self to add to my index funds when the returns I'm getting in real estate are so much better. I should clarify I have no earned income so I don't have any tax advantage to use an IRA.
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Gwen Fyfe
Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
9y
@David Grabiner It is hard to balance! I think it's likely to change over time as my goals change. Right now I just want to be my own boss... in the future I'm more likely to want truly passive income. At the moment, I'm just putting as much into my accounts as my employer will match, and leaving it at that.
If there's no advantage to that kind of account for you right now, yeah, I'd be putting it all into real estate too.
1 Reply
Kurt K.
Investor · in, MI · Member since 2013 · 226 posts · 102 votes
9y
Actual freedom number would simply be replacing my employment income with rental cash flow.
9 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
My $# at first was really low (nothing) because I was desperate to get out of the cubicle and my 1+ hour each way commute. I had some savings and a $42k HELOC. After studying RE diligently for over a year- I quit my job, moved 3 states away to get closer to family and bought a 3/2 doublewide in a park for $14k and $240/mo lot rent.
I lived in the park for 5 years while I built a portfolio of SFR and multi-fam rentals. The sale of that trailer funded the DP on my primary residence - which of course, is a 2-family. I had 33 rentals and I think about $6k/mo passive income when I vacated the park in '07. That was 'trailer park freedom' for me. I guess I've had 2 'freedom' events!
Mine was 'freedom from'... whatever it takes. No income - no problem. I am outta here!
'Freedom to'... will take more money and more time and more self-will. Good discussion @Tony Wooldridge!
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Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Kurt K., how far along are you from making that reality? I certainly hope you are making head way towards your personal goal. Best of luck in getting to your #! Thanks for sharing.
0 Reply
Alex Deacon
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Tony Wooldridge I buy 4-8 properties a month. Flip and buy and hold. I am worth about 4,000,000 if I liquidated everything which is not bragging its just a fact and thats really not a lot of money in todays world. I am fifty now and if I could go back and get a mentor and change some things I would be worth 10 times that today but then again I wouldn't be the person I am today nor would I have the types of experiences I had so I would ever trade that past. My point is I don't need the money anymore. I could retire now and live fairly comfortable. But what the hell would I do everyday? LOL I guess I am free because I don't have to work for anyone else but I do work hard but its different when working hard for yourself verses someone you have to work for. It not like all work. Its fun and its work. It struggle and its good times. I have the days where I say why in the hell am I doing this but for the most part my freedom is continuing to grow and learn and be the best RE investor I can until I don't enjoy it any longer. Thanks Tony for asking the question. I think its one that needs to be answered before anyone ever gets started
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Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Steve Vaughan, love it! How absolutely cool is it to not only accomplish getting to your number (freedom) once but twice. If you don't mind me asking how many total units do you currently have now, SFR's or Multi? Awesome story Steve, thanks for sharing as always appreciate you stopping in to share your knowledge for us all to learn from!
0 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
Originally posted by @Tony Wooldridge:

@Steve Vaughan, love it! How absolutely cool is it to not only accomplish getting to your number (freedom) once but twice. If you don't mind me asking how many total units do you currently have now, SFR's or Multi? Awesome story Steve, thanks for sharing as always appreciate you stopping in to share your knowledge for us all to learn from!
Hey thanks, Tony!
The first number (0) was pretty easy to hit. LOL I just wanted out.
I have the same number of units (35ish) today, but have changed the inventory a bit over the years and carry a lot less debt now. I'm just a 1-man DIY show, so that's plenty and I am content.
Maybe by the time I pay off the other 3 houses in my sights now (with rates of 6%+), plus the 10-unit maturing in 2019, the market will be more affordable and I will decide to build again.
I see you all over the place starting meetups and being out there. A warm welcome and congrats to you for 'bringing it'! Great to see another east side of the scades Washingtonian active on here!
1 Reply
Christopher Blanco
Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
9y
I don't have a number yet. I am surviving in my W-2 job and using that to pay the bills while I build up equity in my business. My plan is to:
a) Pay off all consumer debt (should be done with this in Q3)
b) Pay off my car and purchase a 2nd car for the family with cash (Q1 next year)
c) Pay off my primary residence (Q3 next year)
Once I do that I should be able to quit my job and focus on this full time.
6 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Alex Deacon, wow, those are GR8 and impressive numbers indeed! However, I am quite confident that it was a GR8 amount of hard work and perseverance, getting knocked down but getting back up and having a never quit attitude that has built what you have over time. I absolutely love that you ( anybody for that matter) talk about in a humbling way what your business looks like today as opposed to what it was ( just as @Steve Vaughan just mentioned in his post) and how you have made mistakes but wouldn't change them for the world! Awesome Alex! I appreciate your willingness to share your story for us all to learn from. Best of luck to you in your future goals and successes!
0 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Christopher Blanco, I hear you on not having a number yet. I too am in the process of trying to get my mind wrapped around what that # looks like. It sounds as though you definitely are on the right track to getting there though, I love your aggressive goal setting as it applies to getting to your #! Especially as it applies to unloading that ever burdensome DEBT, if only we all could just recognize how crippling DEBT could be to our over all quality of life and its ability to cripple our advancement to our particular FREEDOM #. Keep the course Christopher sounds as if you will know exactly what that # will be in no time, take good care of yourself but mostly of those 6 precious kiddos of yours! 😃 Best of luck to you I have no doubt you will do GR8 things!
1 Reply
Rich Vogel
Rental Property Investor · Milltown, NJ · Member since 2014 · 131 posts · 130 votes
9y
My freedom number was 80,000 a year in cash flow. I am currently at 79,200 and I just put an offer on a house that was accepted. So I actually gave my two weeks notice two days ago from my day job and will be a full time investor. I know everyone is different but to me the number didn't make as much of a difference to me as the why. My why was spending more time with my wife and two kids who are 6 and 4 years old.
63 Reply
Tony WooldridgePro Member
OP
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Rich Vogel, CONGRATULATIONS Rich! Holy cow, that is absolutely AWESOME that you have not only almost hit your FREEDOM # but more importantly you get to devote time to the most IMPORTANT aspect of ones life their family! Now that my friend is what truly the heart of this post is all about getting to that personal goal, wether it is $, time, freedom, self employment what ever it is, but most assuredly in your case how couldn't you see that as a monumental accomplishment! I truly envy your circumstances but it is stories such as yours and the many others here on BP that give me the drive to strive even harder for my own! Thanks again Rich for sharing you story, and once again a big HIGH FIVE ( virtually 😄) to you brother! AWESOME! BP Nation please help in congratulating Rich on his success!
3 Reply
Rich Vogel
Rental Property Investor · Milltown, NJ · Member since 2014 · 131 posts · 130 votes
9y
@Tony Wooldridge thanks for the praise. I have to tell you for some people it seems like it was easy to get there, for me it was a major grind in the beginning. The biggest advice I can give is know your why and just keep pushing forward not matter what!!!!!! It will be all worth it at the end
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