Anyone on track to quit their 9to5 in < 5 yrs from rental income?

109 Replies

Hi BP,

My first post :)

I started in Dec 2019 and am now up to 3.9k a month in pure cash flow. Need to get to $10k before I think of quitting and gunning for the end of this year. Looking to still get educated and motivated by others doing it. #alwaysbelearning

Updated about 2 months ago

The idea is not to quit working but to dethrone money and get the freedom of time to work on your hobbies/interests. I am hoping there are some who have this same goal. If you want to keep working that's still fair! :) Also I meant within 5 years of starting in REI.

I really started investing in 2016 and I reached financial independence in 2020. However, I have no intention of not working. Financial independence was a backup plan in case I had to stop working, or in case I ever decide to, or if I want freedom to pursue other interests/careers. Right now I'm still working, still investing.

Totally agree, @Nathan G. Goal is not to 'not work' for me. I think innately people who get FI are people who like to hustle. I just want to use my time on my million interests :) 

So are you still working in your W2? Pretty impressive that your reach FI in 4 years.

Originally posted by Cruz Gartner:

Totally agree, @Nathan G. Goal is not to 'not work' for me. I think innately people who get FI are people who like to hustle. I just want to use my time on my million interests :) 

So are you still working in your W2? Pretty impressive that your reach FI in 4 years.

I am a REALTOR and own my own company. We manage about 400 residential rentals and 300 storage units, plus we do some sales. I live well with my income from property management and everything from sales is my "play money" that I use for investments. We've been very blessed the last few years and that really accelerated things. We also take every penny of cash flow and put that right back into the rentals, which helps accelerate things.

Hi @Cruz Gartner ! Welcome to the community. My wife and I bought our first two properties as short term rentals in just under one year. Our income from those two properties allows me to work part-time and my wife is fully retired. We are currently working on starting a rental arbitrage company, so technically we'll still be working, but I won't be working at a hospital as a RN for very much longer (I actually haven't worked as a RN for about 2 months now.) 

Took 4-5 year back in 2010. I Bought a rental and a new primary every year for 5 years. 9 rentals was way more than I needed. Picked up a few more including an eventual retirement property place then just switched to paying them off. 

This was pretty much guidance free. Before webinars and forums. Now some people buy 10 their first year or have a goal of 100’s. It was just a path to freedom for me. I MIGHT be 10% happier with twice as much money but with less than 15 properties I might only hear from my PM once every few months. I might have 1 vacancy every year or two and rarely work 2 hours a month. Heck, I probably put 10x that in to BP. Where’s my check?  :-)

Based on my current momentum, I'm probably within 18 months of being able to do so. That being said I really enjoy my W2 job so have no plans to quit at the moment. It's more about choices than anything else.

@Cruz Gartner  Very nice work and progress. I started buy/repair/rent as a hobby around 2008 when a monkey could make good deals.  Left a well paying, soul sucking corporate job in 2017 after 35 years. I think my current gig is called a 'life style' business.  Intent is not focused on growth but having financial freedom and a work life balance that is pure enjoyment. 

@Cruz Gartner I started 4 years ago and am probably another 6 or 8 years away-my wife and I have 2 kids so expenses are higher than I want.

With that being said, planning on becoming an appraiser and owning another company in the future, so I’ll be working solely for myself then.

Good luck, and great results so far!

That is a great topic @Cruz Gartner !! 

Total newbie here, just starting, we have our first SFR under contract, so just starting our way. The goal is financial independence by 50 and the choice to work or not. As of now I enjoy my W2 job too much to think about fully leaving it. I would love to have the option for me and my wife to work when we choose.

Originally posted by @Nathan G. :

I am a REALTOR and own my own company. We manage about 400 residential rentals and 300 storage units, plus we do some sales. I live well with my income from property management and everything from sales is my "play money" that I use for investments. We've been very blessed the last few years and that really accelerated things. We also take every penny of cash flow and put that right back into the rentals, which helps accelerate things.

 Did you have any partners on your rentals? I would love to hear about your story of how you built your business in such a short time.

If being self employed is retirement I have been retired most of my life. Lol

A lot of people talk about retirement, but then reset their goals bigger along the way. The 10k a month might seem small once you get there.

@Momi Rapozo

Yes. When you get a primary loan you agree to live there at least 1 year. So while I put down 20% for each home the first year or two. After that I would put down 5% for the new primary and 20% for the new rental as I turned the old primary into a rental. I also received lower costs and a better rate for the primary loan. 

This was 2008-2012 time frame after the Great Recession when it was supposedly “hard to borrow/Qualify”. Through some combination of great credit, rental income and 1/2 of them being primary loans. I got 10 loans for about $1.5mil while unemployed. My wife was a nurse but not on the rental loans as she grew frustrated with all the paperwork. 

The last few houses we bought for “cash” with cash out refis on the existing homes  

10 years later we have two mortgages left for about $100k each. This was one of the reasons she was able to retire last year when the county hospital threatened to fire people with less seniority than her. (She had spent the last 6 months dealing exclusively with covid patients but the hospital was losing money hand over fist because everything else got cancelled.)

Let me tell you, 10 years flies past faster than you think. 10 years from now you’ll have a portfolio of entail properties and rental income or you won’t, but it will still be the year 20 friggin 31. That sounds like science fiction date. 

GL whatever you do. 

Originally posted by Stephen Brown:
Originally posted by @Nathan G. :

I am a REALTOR and own my own company. We manage about 400 residential rentals and 300 storage units, plus we do some sales. I live well with my income from property management and everything from sales is my "play money" that I use for investments. We've been very blessed the last few years and that really accelerated things. We also take every penny of cash flow and put that right back into the rentals, which helps accelerate things.

 Did you have any partners on your rentals? I would love to hear about your story of how you built your business in such a short time.

We own everything ourselves and have never partnered with anyone. My market is not good for cashflow but we've managed to do well by purchasing everything off market. 

How so fast? If I make $60,000 in sales commission, I invest $60,000. If I make $150,000 in commission, I invest $150,000. In the past five years, we've made some really good commissions and invested every dime. Some are just "ok" deals and some of them are cash cows. Some purchases were very strategic and a coupe were just blind luck.

Originally posted by Joe S.:

If being self employed is retirement I have been retired most of my life. Lol

A lot of people talk about retirement, but then reset their goals bigger along the way. The 10k a month might seem small once you get there.

Exactly. I originally thought $10,000 would be enough (and it would) but I got there much faster than expected and decided to set my goals bigger. My current goal is $300,000 annually. I would live off $100,000 and give the rest to charity.

Just starting out, planning to close on at least 1 home by Q4 this year.

My goal is to be able to provide the option for my wife to not have to work in 5 years and that option for myself in 10 years. 

@Cruz Gartner

You’re not too far off, just have to keep doing what you are doing. It took me 48 months to reach financial freedom vía real estate. (20 plus rental properties with one mortgage). I started in 2015 and was able to walk away from my day job as a special education teacher in 2019 with a 6 figure passive income.

When I tell my story, a lot of people are most impressed by the speed. What they don’t see is the million small sacrifices that I made over and over for 48 months, and the vision to see opportunities where others don’t.

I always encourage people I work with to focus on three things:

1. Personal development. You don’t get financially free with first becoming the right person.

2. Develop or find a system that you allows you to move quickly without being in a hurry. Investing in a marathon, not a sprint.

3. You need a team. You’ll never win big trying to play all five positions on the floor. Focus on one position and surround yourself with a good team with the same vision as you.

Good luck your journey.

I’m 4.5 years in and under contract on my 11th unit. I started out buying on my own but quickly realized it was a lot easier to partner with people that have more money than I do. I cashflow a hair north of 3k a month after expenses and haven’t even begun to benefit from the power of leverage. I am the only earner in my household and the W2 only pays around 60k. I’ve made something from very little. I live in a high cashflow market and invest primarily in low income neighborhoods. I may choose to invest in a higher asset class at some point but right now I’m building my cashflow safety net. No plans to quit the W2. Time to 10X. Current target is 30k a month.

Originally posted by @Nathan G. :
Exactly. I originally thought $10,000 would be enough (and it would) but I got there much faster than expected and decided to set my goals bigger. My current goal is $300,000 annually. I would live off $100,000 and give the rest to charity.

 I can give you the name of our church. :-)

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