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
@Tony Wooldridge Quite a ways off, but on the right trajectory...I have multiple revenue streams that I am expanding through RE and other business...so, it's just a matter of time...RE is just one way to make passive income in this world...probably my favorite though.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
"RE is just one way to make passive income in this world"
RE does not really qualify as passive income. A mutual/income fund would be passive.
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Account Closed
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
9y
$10,000 a month net. I enjoy my job so I'll probably stick around at least until I can retire with flight benefits (I work for an airline). To me real estate is more about building a retirement and something to leave behind. I'll probably always have a "job" of some kind.
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Casey Faul
Lafayette, LA · Member since 2017 · 27 posts · 11 votes
9y
Great question @Tony Wooldridge! For me I don't believe I can ever attach a number to freedom or at least put a numerical value on it. I see freedom as more than hitting a certain net worth. Freedom for me is flexibility with my time to engage in purposeful activity by contributing to my church, being a leader to my family, and helping friends with their projects. I have realized that we all evolve as a person every 6-12 months which means desires change and we dream new dreams. I believe when you are working towards your purpose and doing everything you were put on earth to do it's challenging to put a dollar amount on that. :)
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Bryce Wong
Rental Property Investor · Exeter, CA · Member since 2016 · 60 posts · 35 votes
9y
David Zheng Your story is truly an inspiration. Could you please share with me what you did to get up to 75k in just 1.5 years? That's amazing!
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Sarah Melton
Akron, OH · Member since 2017 · 25 posts · 14 votes
9y
I love the diversity of these answers, proves that everyone's situation and needs are different! My freedom number between $5000-$6000 a month. My family and I have significantly reduced our monthly bills by recently moving to a different city and house which cut our mortgage payment by over half of what it was. I am just starting on the real estate journey and moving was our first real step of this journey.
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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
@Tony Coretto thanks for stopping in to share your story with us all. It would be wise of all of us reading this to take notes on the saving $ like mad part and setting such a long term goal. Awesome, I am so happy to hear about your ability to sell your old business and move to where you want to grow roots and invest. Thanks again for sharing!
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William C.
Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
9y
Jack B. I gotta ask what kind of asset class your in? Those numbers have my head hurting. $30k in cash flow and $200k in appreciation a year? I can't figure out if it's a $10 million dollar property appreciating at 2%, or a 800k property appreciating at 25% a year....the cash flow would make more sense for $800k. Are you seeing $200k year after year? Or just a once time Fixup and forced appreciation type of deal? I'm think I'm in the wrong market. We've seen a steady appreciation over the last 5 years, but probably only about 30% total, or 6% a year. Historically Real Estate typically appreciates at about 2% a year, so it's been good, but that also tells me I should expect to decline or leveling out in the near future based on the last 100 years of data. Curious to hear your situation. Sounds like you are doing very well in your market. Best of luck the appreciation continues at that rate.
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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
@Thomas S., boy isn't that the truth, difficult to stop making money once you start, kinda like not being able to eat that one ruffles potato chip once you start you cannot stop! (Corny analogy!, lol) Anyway, I cannot agree with you more that we all should be looking to preparing for our retirement whether that is next year or 30 years from now. Thanks for stopping in to share your thoughts on the matter. Best of luck to you in your future endeavors.
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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
@Jacob Simac, congrats on your recent arrival to BP Nation happy to have you on board. I too am assuming that everyone's # will change as does their goals and life circumstances change with them. It all comes down to how you run your business and that will eventually change with time as well as with the market. Keep setting those goals which will make everything attainable over time. Best of luck to you and your future in REI investing. Thanks for stopping in.
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Jason Harbaugh
Herriman, UT · Member since 2016 · 1 post · 0 votes
9y
I currently have a W2 job that I make good money at, work from home, and like what I do, but the appeal to real estate investing for me is to gain that independence from an employer, and never have to rely on anyone else again. I have yet to buy my first property, but looking to do so ASAP. All of that being said, my # is what it takes to equal my current income X 2, ~30K/mo net. But, I must say, I'm never one to be satisfied so like a lot of us, I probably will adjust my Freedom number once I hit the original one. :)
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Joe J.
Investor · Los Angeles, CA · Member since 2017 · 95 posts · 52 votes
9y
Interesting question. My freedom number is probably around $20k/month. I'm at about $1k/month on a net cash flow basis so it looks like I won't be quitting my day job anytime soon. Great to hear the different stories from different parts of the country. I've always been extremely financially conservative but I hope to make some significant moves as opportunities come up.
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Jessie Nunley
Springfield, MO · Member since 2017 · 158 posts · 114 votes
9y
@Tony Wooldridge I was recently listening to a BP Podcast (can't remember which one) and the person featured was talking about generating as many revenue streams as possible. I think he even mentioned that his goal was to cash a check every day of the month from his properties. I thought that was an amazing goal and would like to adopt it as well. I would like to own enough properties to be able to cash 1 rental check for every day of the year!
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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
@Jessie Nunley, sounds like a GR8 goal to have. All that stands between you and your goal is setting a goal and executing until you reach it, action is truly the only way to attain your wants and dreams. Thanks for your service to this GR8 country, you truly are the definition of FREEDOM as a servicemen to this GR8 country! Best of luck in your REI ventures and stay safe out there!
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Erwin F.
Rental Property Investor · Seminole, FL · Member since 2014 · 85 posts · 68 votes
9y
10k a month of net income. We do a combo of stocks and real estate. So with just rents (minus expenses, capex, and mortgage) and dividends only (not including equity growth), we're a little over 20% towards our goal. We consistently buy index funds and put money in savings for RE every two weeks. But real estate is harder to come by in my area in Tampa bay, FL.
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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
9y
$7 million net worth.
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Edwin Ballard Jr
Realtor · Atlanta, GA · Member since 2016 · 40 posts · 15 votes
9y
I'm t
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Joseph Perez
Hollywood, FL · Member since 2016 · 4 posts · 4 votes
9y
I guess we need goals to strive for right? I am looking at a lot of responses and the "whys" with them and I have a 3 tier freedom number basically for myself. I will see how it goes as I am new and about to dive into RE investing for the first time.
First Goal: $ 187,500 Saved from Wholesales and Flips. Separate from investment account. This is to quit my W2 and to keep the wife comfortable that I am going to quit the workforce. With her w2 and our expenses, this will be more than enough to keep us going a few years, this is assuming I bomb several deals after I quit. So a nice cushion.
We are a little more than half way from other investments and savings so woo hoo, hopefully the Wholesales and Flips can rocket me up to that more quickly.
Second: $18500/mt Passive. This is basically to allow my wife to also quit and is above what we make annually now. Take home after taxes needs to be considered, and again have to take into account her feelings about investing, as she and her family our not fans. Sad really.
Third: $65k/mth passive. I want nothing more than to make this a thriving business where we have 20+ employees. I would love to grow this last number substantially and the big dream is to put a lot into education charities /causes focusing on math and sciences. The other dream is to allow my wife to open fitness studios as she loves that stuff, doing those obstacle course races every chance she gets. Also at this level I am looking to spend a lot of time with the family (would assume a few kids by then) and doing the things we love.
Bonus numbers: 8 and 3. If I am spending 8 hours a week on piano and 3 weeks out of the year doing leisurely travel, I will be as happy as can be.
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Bryan Templin
Marana, AZ · Member since 2017 · 64 posts · 18 votes
9y
My freedom number is based on future expenses but it doesn't stop their with the power of 10x #GrantCardone I'm working my first deal now which will net roughly about 4K a year (not much I know) But with a steady business plan the growth will be rapid From covering all my expenses to when my children go to college I want to be making 200k a year which comes out to (roughly) 17k a month I make that about that much now but I rather not be working 12-16 hour days lol 17 k a month comes to about (assuming I can cash flow a minimum of 250 per door) 68 units The deal I'm currently working on closing will cash flow just about 400 a month and with Multi family Properties I expect this number to stay consistent Thanks BP for all you do You've shown me what Passive income is It's not some MLM where I have to recruit a. Bunch of people It's something I can do all by myself And the banks of course lol
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Martin Spielvogel
Investor · Escondido, CA · Member since 2017 · 55 posts · 15 votes
9y
when I started my construction business at the age of 20 my goal was to retire by 40. Now when I look back I realize that I have lost track of my goal because I did not have a concrete plan on how to accomplish it. Now when I am 38 and look back those 18 years seem like an instant. Although I had the freedom of being my own boss I have no passive income. This year I decided to change that. My goal for this year is it get one or two rentals and go from there. My freedom number would be $ 15K a month, but I guess the first $1k will be the hardest and that's what I need to focus on right now. I guess what I am trying to say to all of the new investors is don't procrastinate. Look for the first deal make sure it makes sense and take action.
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Account Closed
Investor · Valencia, CA · Member since 2017 · 2 posts · 0 votes
9y
$70k/year
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Kate Stephens
Rental Property Investor · Ventura, CA · Member since 2016 · 62 posts · 34 votes
9y
Great discussion! Freedom number is $11k a month and my "freedom to fly" number is $15k. $11k supports my family (including a Californian size mortgage!) for comfortable living and my freedom to fly number is comfortable living with some traveling adventures thrown in. I am cashing in equity in my Californian houses and have quit my job (last day in 3 weeks) to be an active investor to get to my freedom number in 1 year and my freedom to fly number in 2. It's an ambitious goal but even if it takes me longer than planned to get there it will be an incredible adventure!
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Andrew Holmes
Rental Property Investor · Chicago, IL · Member since 2015 · 275 posts · 271 votes
9y
@Tony Wooldridge
This is a interesting question?
What you call Freedom Number we call that your LPN (Lifestyle Property Number)
I think most folks have 3 different numbers
1. What you need to live on. (This covers your basic needs)
2. What you want (This is to upgrade the quality of life you want to live)
3. Your Dreams (This can be a huge to ridiculous number just based on your ambition)
So the way we calculate LPN is as follows
$ 800 net cash flow per property - This is paid off rental properties bought with purchase, rehab and rent and then paid off with cash flow. In my market $ 800 is the net cash flow on average once the property is paid off.
**As a side note when we calculate your LPN. Earned income does not count only cash flow paid off property income can be used towards LPN.
So personally at this point in my life
1. Needs : $ 8000/ 800 = 8 Properties * 1.2 = 10 (LPN) (Goal achieved)
2. Wants: $ 20,000/ 800 = 25 properties * 1.2 = 28 (LPN) (90% achieved)
3. Dreams: $ 100,000/ 800 = 125 properties (This will take some time but work in progress)
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Elbert D.
Real Estate Entrepreneur / Investor · Chicago, IL · Member since 2016 · 688 posts · 367 votes
9y
I think most people can live off a million or more per month after taxes.....so anything grossing higher than about 15million per year is good with me. Doing real estate plus having a successful business will get you there.
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Sebastien Hitier
Rental Property Investor · Hong Kong, Hong Kong Island · Member since 2014 · 188 posts · 114 votes
9y
Somewhere above 5k net per month, it appears to me that earning more means less freedom.
You take on so many commitments and responsibilities. The family, the second house, the third house, the gardens, the car, the bike, the boats...
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