New to Real Estate · Savannah, GA · Member since 2021 · 15 posts · 26 votes
Hey everyone! I am currently trying to get all my ducks in a row and have a long-term plan outlined. I know real estate investing will be the way I achieve my financial freedom. My vision of financial freedom is, of course, having my assets pay for my livelihood but also allow me to buy more assets to grow. What I'm trying to wrap my head around is a realistic number of units I need to achieve this goal. At my W-2 job, I am making around 60K a year. This amount is fine because I am keeping my expenses low. But I also know that this amount of money won't sustain me year-over-year for the rest of my life. I haven't put an exact number on what my end goal is yet, but it's more than 55K a year lol.
I'm aware that this COMPLETLY depends on the deal. What's most important to me right now is the cash flow of the deal. Appreciation and tax benefits are just icing on the cake.
I would love to hear everyone's stories as to how many deals/doors it took for you to achieve your financial freedom and, ideally, a breakdown of what those numbers look like. Now is the time to brag! lol
I would love to hear everyone's stories as to how many deals/doors it took for you to achieve your financial freedom and, ideally, a breakdown of what those numbers look like. Now is the time to brag! lol
Freedom from the rat race while living frugally in a trailer park - 12.
Skinny FI. Self-managed so no RE (retire early).
Freedom to move up in house, lifestyle, not budget so much in medium FI - 22.
Oops, wanted more time freedom so got a PM for half. Need more units, they are expensive as he'll.
Start with 1. Be brave enough to walk away from “deals” with negative cash flow - if it can’t support itself it has no place in your portfolio.
Working with a friend- partnerships can kill friendships - Invariably one person tends to be far more driven than the other. It may be necessary for each of you in order to start, but part of the process should be putting everything in writing about what is expected from each side - Invariably one person tends to be more driven than the other & different opinions. What happens when one of you wants to sell, and the other wants to keep? Have a buyout/sale agreement between you. Also, Are you both OK with the idea that you might lose money? It can happen.
It depends on your definition of financial freedom. I love my W-2 job so I have few years left doing that then I will have a pension for life. I love doing real estate. The deals, rehab, and then securing a tenant. I will do that until I am bored. Whatever income that covers your basic living expenses and lifestyle will tell you the amount you need for your financial freedom.
I knew a guy who has 70 properties, he wanted 100. One day he woke up and said to himself, I have too many properties now with 70, Why do I want 100?
What he realized was he needed a A minimum amount of cash flow. He sold everything he didn’t want, paid off what he wanted to keep, and flipped and wholesaled using this strategy for the rest of his life keeping only the good property that cash flowed and provided no headaches
@Lauren Akins To me it all comes down to net cash flow. It depends on how you build it. How much would it take to live the lifestyle you want?
Everyone's doors are different. I know an older guy, where it's only him, his 2nd wife passed away a few years ago. He is active, so not a hermit. Owns 2 doors, soon to be 1, not including his paid off residence. All paid off; cash flowing about $1,400 per month total. He also receives social security. His lifestyle, living expenses, and household budget spend is about $1,000 per month. That to me sounds pretty good. Low stress and positive net cash flow, after everything, every month.
@Jim K. great analysis and assessment on the bequeathing of rental properties. One of my "changed" views in the last 6 years.
Now I have correctly surmised that allowing them to strike out on their own (after college or trade school) debt free is a far greater benefit than I ever had.
If they see a viable investment property or business opportunity that they can "sell" me on- then I will have the liquidity to assist.
But handing them an equity rich cash flowing property is akin to handing them a lottery ticket- few would be prepared for.