What's your financial freedom #?

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What's your financial freedom #?

Aaron Bonne
Rental Property Investor · Cincinnati, OH · Member since 2014 · 40 posts · 55 votes

What's your financial freedom #? How do you plan to get there? And how far are you now?

To clarify, this is based purely on passive cash flow. Meaning, how much money comes to your mailbox each month without having to do anything.

I'll start.

Goal: $10,000 per month

Vehicle: Real Estate Syndications

Current: $2,000 month between 5 syndication investments and a duplex I still own

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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y

Goal -17.95$ monthly 

Newport’s 9$

Bottle of mad dog 8.95$

That’s all I need to have freedom 

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  • Aaron Bonne
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2014 · 40 posts · 55 votes
    7y

    @Jaysen Medhurst

    Love the aggressive goals. $125k per month would be incredible. As I posted previously, imagine the many ways you could give back and help others. Isn’t that inspiring?

    0Reply
  • Aaron Bonne
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2014 · 40 posts · 55 votes
    7y

    @Eric Jensen

    Awesome! Look at the bright side, you learned, whether you consider it close or not. Some never realize the opportunity, at least you have.

    And yes, $120,000 a year is plenty for most

    1Reply
  • Aaron Bonne
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2014 · 40 posts · 55 votes
    7y

    @Brian Ploszay

    I agree, to a degree. I have zero desire to own small multi family on my own anymore. I’ve done that, and while good money is to be made, it’s a headache and I could see that path of acquiring more wasn’t going to make me “free” as I still had plenty of headaches even with 3rd party property management.

    That’s why I turned to syndications. Investing with others who do all the work and I still get solid returns and a much more passive investing strategy. I’m giving up control on LP side, but I’m OK with that given the less headaches and vetting the operators I’ve invested with.

    0Reply
  • Aaron Bonne
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2014 · 40 posts · 55 votes
    7y

    @John Teachout

    Congrats!! What’s next for you? Continuing to buy more?

    0Reply
  • Aaron Bonne
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2014 · 40 posts · 55 votes
    7y

    @Nigel Guisinger

    Very good point, what do you do once you hit the #. That’s interesting, haven’t really thought about it LOL. I agree though, certainly need to think about when enough is enough and you spread your time and energy elsewhere.

    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    7y

    @Aaron Bonne    Somewhat of a good idea.  Usually, when you invest with other's sponsored syndications, your control and rate of return are muted.  They get a promote and usually a different split.   Where do you invest?

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    7y
    Originally posted by @Aaron Bonne:

    @John Teachout

    Congrats!! What’s next for you? Continuing to buy more?

    Yes, we're always looking. Just got back a few minutes ago from viewing a property that has a lot of upside potential but not something we want in our rental portfolio. We are selling a rental (to the tenants) the end of the month so we'll replace that and then probably add about one house per year. We're in the middle of a major rehab now that will use up the rest of 2019. Deals are pretty scarce around here.

    0Reply
  • Eric Jensen
    Member since 2019 · 9 posts · 12 votes
    7y

    @Aaron Bonne one thing I didn’t mention. I teach skiing part time each winter at a resort that caters to the rich and famous. Over the years I have taught people who are extremely wealthy. I’ve also been told by these uber wealthy people how they wish they could trade places with me. Not all of them feel this way but most do. I remember being told by a lady I’ve taught for more than 15 years that she would give all her millions away to have a relationship with her kids. Too bad that’s not how it works. Money and freedom is great. But there is a cost to EVERYTHING! As long as we don’t forget what is really important in life, then we can have a great life.

    7Reply
  • Joshua Benjamins
    Lender · Virginia Beach, VA · Member since 2018 · 49 posts · 38 votes
    7y

    @Aaron Bonne

    Goal: $8,748.23

    Vehicles: 5 single family rental properties

    Note lending

    Military pension

    VA Disability

    Current: $6,235.48

    Looking to cash in on the SFH properties and acquire my first Multi unit apartment complex. Hoping that will put me over my goal sooner.

    1Reply
  • Tim Crosby
    Rental Property Investor · Winter Haven, FL · Member since 2018 · 68 posts · 20 votes
    7y

    @Aaron Bonne

    $4,000 a month through buy and hold real estate, primarily through the BRRRR method. To do this I need at least 20 units that cashflow an average of $200 per month. It's been one year and I currently have 2 units. As of this moment, I'm in the market for a 2nd, more permanent property for myself and my family, but I plan to buy my next two investment properties by the end of 2020.

    0Reply
  • Brooke Spaulding
    Rental Property Investor · Braintree, VT · Member since 2013 · 35 posts · 13 votes
    7y

    Our goal for both my husband and I to be "free" is $8,000/ month. Vehicle to get there: vacation rentals and maybe add long term rentals. Currently about $500/ month profit and working on next deal.

    1Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    7y

    Goal #- 50K per month. 

    Vehicle- SFH MF

    Current- 0. I have been a real estate agent for a year so building that business, beginning of next year going to start purchasing MF

    0Reply
  • Adam Britt
    Bessemer, AL · Member since 2017 · 49 posts · 30 votes
    7y
    Originally posted by @Aaron Bonne:

    @Adam Brit

    Nothing wrong with having different goals than others. And don’t be ashamed of where you’re at. Getting to the $1,000 a month in passive income mark is a feat in itself.

    Have you considered house hacking a duplex, just to get started? It’s how I started and hands down the best decision and investment I’ve ever made

    Whew, I sure have! I would kill for the opportunity to house hack! I would love a quadplex, but would settle for a duplex any day of the week. Thing is, I live in the Hoover/Birmingham area. In all my searches, I've only seen a single multifamily home anywhere NEAR an area that I would actually live. And that one was put on the market and bought in less than 24 hours at a price I couldn't even touch, and came fully rented with leases intact (defeating the house hacking option to begin with). Most MFH I find in Alabama are either: 1. Quite a few hours away from work. or 2. In an area I don't think I could force my wife to live, even if I wanted to. (Those are typically pretty rough properties anyway). 

    If anyone has any information, I would be incredibly interested in getting my hands on (and myself in) a MFH in this area. PMs always welcome by the way, if anyone reads this and does happen to know of such a place! 

    0Reply
  • Tanner Marsey
    Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes
    7y

    @Erik Whiting

    You’re forgetting that in certain parts of the country 120k/year barely gets you by on a modest lifestyle.... especially if you have a family.

    0Reply
  • Andrew S.
    Rental Property Investor · Helena, MT · Member since 2017 · 282 posts · 117 votes
    7y
    Lean Goal: $3000 per month Fat Goal: $5000 per month Current: House hack (live for free) + $800 per month cash flow in other rentals. Vehicles: Small multi-family rentals, VTSAX When I reach FIRE I'll probably continue to manage and repair my properties while I work on other side hustles. Or continue my engineering career to buy more properties.
    0Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Jon Penton:

    @Cody L. That’s what I keep thinking every time I see someone say that owning real estate isn’t financial freedom - build into your “Financial Freedom #” the cost of growing your business, so that you can work on it AND in it as little as possible. Heck - sell your business and then invest in it. Isn’t that Robert Kiyosaki’s 4th quadrant?

    Don't know if you're asking me about Robert Kiyosaki’s 4th quadrant as a retorical question or looking for me to answer.  To be honest, while I know who the dude is, I've never read any of his books, watched any of his videos, or have any idea what his "4th quadrant" is  :)

    0Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Tanner Marsey:

    @Erik Whiting

    You’re forgetting that in certain parts of the country 120k/year barely gets you by on a modest lifestyle.... especially if you have a family.

    Yeah, that's just over 1/2 of the draw I take (I leave most $ the properties make in my operating account).  And I don't have a "lavish" lifestyle.  We do travel when/how we want and eat well I guess.  But our home is somewhat modest (but in San Diego).   To maintain our current lifestyle (which is good, don't get me wrong, but not crazy.  No private jets or butlers) I need to take a draw of about $200k/year. 

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    7y
    Originally posted by @Erik W.:

    I see a lot of $10Ks out there.  Seems like a common number many folks use.

    Of course, the question on the other side of the coin is "What kind of lifestyle do I want to lead and where?"

    There's a blog/site called retireearlylifestyle.com that I highly recommend if you want to see how wisdom, frugality, and the willingness to take a different approach to early retirement has been going on for 20+ years, before concepts like FIRE were main stream.

    I'm a Dave Ramsey fan and we recently became Baby Step 6a Debt Free...all loans and personal residence paid off, but we still have rental loans.  Working on getting rid of those ASAP.  That's the "6b" part.  Then we'll be truly debt free!

    I don't see a reason to get 300 doors if I'm content with 30.  For that matter, 300 doors are 10x the hassle factor, and if the idea is financial FREEDOM, it seems silly sacrifice the 2nd word (FREEDOM) for the sake of the 1st (financial).  I'm not financially FREE if I have to constantly be one step ahead of a market downturn and have $2-3  million in debt hanging around my neck.  "Good debt" is only "good" until life doesn't work out perfectly as planned; then it causes people to go bankrupt.

    So maybe the best idea is to start with the end in mind.  What would I do with $10,000 / month?  Could I be happy with $8,000?  How about $7,000?  What are my plans other than volunteer for a local charity, go fishing, hiking, or roaming around the world?

    I could live a pretty satisfactory, full life on $3,000 / month in my medium size town (pop 160,000).  With no debt, there's not a whole lot to spend money on that's worthwhile, in my view.  I don't really need or want to own a Corvette ZR1, I hate golf, and a wine cellar probably gets dusty after awhile and not that interesting.  I don't need to live in a prestigious neighborhood in a "hot market" and go to trendy clubs just to make it rain $1,000 bottles of champagne.

    Who am I trying to impress, after all?  Maybe living with contentment is a good goal.  Having enough for today and probably tomorrow too is definitely a "freeing" thought!

     Hey you - quit talking all that sensible nonsense! 😉😁

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    0Reply
  • John Woodrich
    Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    $1,000,000 per day - still working on how to make this happen.

    3Reply
  • Rich S.
    Central, MN · Member since 2015 · 148 posts · 184 votes
    7y

    I think the beauty of the question is that it shed's some light to everyone's FREEDOM being different.  Some want to travel the world and do whatever they want.  Others want do stay where they are and keep doing a lot of the same things just have the power of choice with their time.  And lots of people are in the middle.  I see healthcare being the biggest variable in this for any and everyone as who knows that that looks like 10-20-30 years down the line.

    2Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    7y

    @Aaron Bonne I’m able to live happily at $5000 per month. That’s not where I want to be but money doesn’t make me happy, time does. Beyond that I’m happy currently and couldn’t ask for any more in my life. I survived a horrific motorcycle accident last year, have my health, have an amazing girlfriend, great friends and a supportive family.

    Currently I’m over $3000 in passive income but won’t leave my “job” when I hit my FI number. I love what I do and it’s part of my happiness level to be able to employ and provide for others so I’ll continue to grow that.

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    3Reply
  • Jake Culler
    Rental Property Investor · Port Vincent, LA · Member since 2015 · 8 posts · 5 votes
    7y

    Goal: $1,500 per month to quit W-2 (transitioning to 1099)

    $10-15k to quit 1099 (independent insurance adjuster)

    Vehicle: Buy and Hold through BRRRR and Flips

    Current: $1,200 month between 6 units

    2Reply
  • Jonathan White
    Rental Property Investor · San Diego, CA · Member since 2019 · 12 posts · 6 votes
    7y

    @Aaron Bonne great post and question. It makes people really identify their needs and goals to add direction to the action they (I) will need to take.

    Goal: $5,000 a month

    Really to replace my wife’s income to allow her the freedom to do what really inspires her. She would love to flip homes but I think she like many is scared to take the leap. If we can generate enough supplemental income to allow her to do so, we would both be happier and feel more secure. Mostly it would give her time back, which cannot be replaced.

    Current status: Still looking to take that jump. I am a bit stuck in the analysis paralysis state, so I am working myself to the edge where I would have no other option but to take the plunge. I am currently trying to assess the amount of reserves necessary with a rental purchase, and trying to open up various avenues to get the experience via different means. At the moment, I am interested in SDIRA options, and I am looking into options with non-recourse lenders. Understandably those funds won’t help my monthly income, but I can still gain the experience while I build funds outside my retirement account to invest later.

    I am glad I ran across the post. It feels good type these ideas out.

    2Reply
  • Roger Hefner
    Yuma, AZ · Member since 2015 · 140 posts · 137 votes
    7y

    @Aaron Bonne I'm debt free now so 7k now but 10k will be good enough. I dont actively seek properties anymore but if a deal shows I will buy.. retired at 48 now 57..

    2Reply
  • Trevor Stratton
    Contractor · Seattle, WA · Member since 2016 · 12 posts · 6 votes
    7y

    Currently I live a very modest lifestyle, but I’ll be getting married in the next year or so and expenses will go up a bit.

    My goal to quit my second job is $1000 per month.

    Then to be able to quit my first job is 4K

    But that could all change....

    Current number is $0 but that will change early 2020 when I’m hoping to start my investing with a house hack

    1Reply
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