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

109 Replies

Originally posted by @Zach Whitley :

I’m 90 days in and have closed my first vacation rental, 2 flips, and a 3200 sq. ft. duplex on an acre of land with a 3500 sq. ft. shop that has an office and half bath. The duplex also included a commercial lot adjacent to a convenience store. I have a vision and a plan but I was never 100% sure it was feasible to obtain in the timeline I have envisioned.

After reading these replies it’s nice to know I’m on track. I tend to agree that though I seek the income/cash flow to be FI it is merely for the cushion. The chance that the “what-if” factor becomes a dreaded reality. I enjoy investing and I enjoy my W2. As long as my satisfaction tank remains near the full line I’ll continue to do both.

Happy investing everyone!

Im down here in gulfport (again) for Military purposes and am very much considering investing in this area. Would love to connect and see the opportunities.

Originally posted by @Vee Patel:

@Nathan G. Can we connect via phone or zoom. I'm also a realtor however looking how to start making cash flow instead of just prospecting for clients.

Maybe in the future. I'm on vacation right now and have some serious work waiting for me when I get home. 

@Cruz Gartner

Started 2019 as well and cash flowing about $3500/mo. I have 1SFH and 2 condos as rental properties.. all paid off. Looking to scale up but I am running into problems with mortgage lenders due to my type of job- travel nursing. Anyone here know of any lenders who will lend to a travel nurse with 1.5 yrs experience?

@Steve Shin I have 2 rentals in Texas and 1 in Las Vegas. My primary home residence is in California. Now looking to invest in California. The rate at which equity goes up here in California is insane!! So I am in the market to purchase another…in San Diego precisely.

Focus on cash flow if you need to buy groceries.  It's not this binary but focus on equity if you need to buy cars, homes, tuition, and long-term care.

@Cruz Gartner

As a 19 year old with really low living expenses I’ll probably hit FI next year at 20. property #1 is a rent by the bedroom house hack and does over $1,200/mo net. Under contract on property #2 and plan for that one to do at least $1,000+/mo net for my stake in the deal. When I buy another 2 this year At my current pace I’ll be FI in 18 months, when I hit my goals I’ll be at FI in less than a year with $4k+ in cash flow at 20. The future will tell, but I know I’ll hit it well before 5 years.

@Cruz Gartner it’s certainly possible, you just need to be creative, find good deals, refi your cash out of, and manage well. We grew from 0 to 100+ units in 4 years, well within the realm of possibility. That said, it requires you to run a real estate business, not invest in real estate - there is a difference

@Sherman Ho have you put a pencil to creating a plan to reach these goals? I always find that putting some viable numbers in to the equation and considering factors like leveraging capital, cash flow and market selection will help scale this out for you. This can make it both real and obtainable! Best of luck!!

@Cruz Gartner Where in the world is everyone buying to get these kind of rental returns.. I’ve got 4 houses and the highest cash flowing one is a few hundred a month. Purchase price $100k. Rent price $1400 and that’s about as good as it gets in my area. I’m not going to have any kind of living income off these until they’re paid off.

@Cruz Gartner

I can agree with that statement… I’ve been at it a few months, still looking for my first deal… made lots of offers, missed out on some early on…. I can’t imagine being at 3900/mo in cash flow in 18 months! Amazing

I expect to retire from my W2 job this month.  RE investing has set us up well financially for life.  Not from the income as much as the appreciation.  We would have outstanding income, except we refinance extracting equity.  When we refinance and extract the equity, our cash flow gets reduced.

All of our properties have market rent to purchase ratio above 1%, but the market rent to last refinance value is typically closer to 0.7% ratio.   However on my last round of refinances, we extracted enough value that most people could retire on just the money extracted on that day.

Best of luck with your RE investing.

Personally, I started dabbling in RE investing and was doing all the work myself to Rentovate our properties.  I was working my W-2 job back then as well, and when I finally had enough of my job, I made a goal.  I was probably around the point you were actually, @Cruz Gartner , when I made my goal to get to where I needed to be in a short 4 months.  It wasn't maybe quit $10k in cash flow, but enough to continue down the path comfortably.  I did it so that I could quit my w-2 and then be home for the kids instead of worrying about after school care, vacation requests, etc.  I completed my goal in 4 months by purchasing about a dozen homes in that time frame with just me and my wife.  Yes, it was completely insane but completely worth it!  

Thanks for your kind words Jessie.  
congratulations on closing on your first rental.  Hooray!

Originally posted by @Jessie Kristie :

@Isabelle Chapman I’m new to investing so might not be able to offer wisdom but encouragement that I can do. I’m also on the same boat as you. MBA, 9-5, plus second job. And just closed on my first rental OOS. Feeling overwhelmed is natural especially when you’re first getting started on something new. But we’re all here to help and getting started is half the battle. Good luck!

Originally posted by @Jonathan W. :

@Isabelle Chapman

It does not need to be a home run like him. Find a single and get it to the game to learn. That first one teaches you so much. Once you get 2 years on the books, financing get easier.

Thanks Jonathan for bringing up the financing benefits of just getting the game. Your words are Also a great reminder that my first property is also an investment in my REI education.

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