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

109 Replies

@Cruz Gartner Congratulations man! 

I started educating myself in 2015, looking for deals, and saving cash for my first rental which I found in early 2017. I now have 37 units over 7 properties, 3 of which are under renovations that I bought this year. After they are complete I will cash flow over 10k per month, however I have partners on some of the deals I split that with, therefore I wanted to grow my portfolio more than needed before leaving my W-2 Job (my goal was 4k/mo net cash flow personally). During that time I was able to grow a successful real estate agent and a construction business that started just as support businesses for my rental portfolio but grew into their own separate income streams. I plan to exit my W-2 job this fall as my other businesses are also generating more income than my previous career. I was considering making the jump last year but covid definitely made me slow my plans and see what happened in the market. 

I never planned to "retire" from working all together but I wanted the option to leave my career as a police officer when I choose to. It definitely happened faster than I anticipated in the beginning but given current events of the past few years I am very happy to get out when I can. I will be working less than hours when I leave my job but will be gaining the flexibility of making my own schedule and working when I choose to and with whom I choose for the most part. I am very scared and excited to make the leap to growing my investments and businesses exclusively. Thanks for the post, and best of luck in your journey! 

Wow! Amazing to hear successful stories like this. I am a real estate agent and looking for my 3rd investment property but looks like you moved super fast!

Originally posted by @David Vanlandingham :

@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!!

 Hi David,

Yeah, I have penciled an aggressive 10 year-goal. I found that if I were to invest all our assets and get a 20% CAGR, we should be in a comfortable position in 10 years. 

Definitely agree with the "relatively safe" leverage of REI vs margin on stocks, that is one of the big reason we are looking into REIs!

As for market selections, this is the toughest piece so far in our journey. Feel free to let us know of any good stable appreciating markets.

Hi David , Thanks so much for reaching out!

I haven't exactly selected a market.

I'm in the process of checking and crunching numbers on a turnkey property in Marygrove Detroit.  Many people in the Canada based REITE club have had great success with a given turnkey provider in Detroit, but I've found that the property they suggested for me seems neither here nor there in terms of cash flow and appreciation.  Just waiting to hear back from a realtor, but feeling like it may be a no-go.In the process of seriously considering the property I experienced the process getting mortgage and insurance quotes, looking at comps, IDing a great lawyer for taxes and LP set-up... The turnkey provider states he has never seen anyone get so granular with the pro forma; it wasn't a compliment.  My mentor however congratulated me on coming up with more realistic numbers!

I'm still trying to nail down an overall strategy that leads down the FI road, addressing key questions of cashflow, equity, scalability while reflecting my current savings and recurring earnings.  I am torn between starting small and putting a bit more into the market due to our inflationary environment.  I feel as if I need further clarity about my strategy before I can purchase my first property with confidence. I've actually reached out to Josh at RtoR as I understand that this is part of what you offer.

Very open to resources hat address the mid to longer term vision of REI for FI.  There's also a little added complexity as I'm a foreign (Canadian) investor, therefore my first purchase will have a more significant impact on qualifying for US-based lending. I believe this clarity will help me choose a market.

Originally posted by @David Vanlandingham :

@Isabelle Chapman love the fact that your plate is full but you’re willing to keep pressing forward, that’s what it takes!! How are you selecting your markets and what are you overwhelmed with?

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