What's your financial freedom #?

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

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 Taylor
Olathe, KS · Member since 2018 · 148 posts · 207 votes
7y
Originally posted by @Jay Hinrichs:
Originally posted by @Ivan Barratt:
100k/month
Easy and to the point !!!! 10X it ! it amazing how 10k is the focus number for so many folks..

I think 10k is the center point because it's about double what an average family needs to meet base expenses in your average market. Most people have a $1500 to $2k mortgage, then cars, kids, utilities, groceries, etc take you to around the $5k mark per month. So the extra $5k is for health insurance and other misc expenses...kind of like the 50% rule, 50% is your base expenses, then the rest is for whatever. It would be pretty easy to reduce your expenses down by moving somewhere cheaper but I don't think most people really want to do that.

1 Reply
Brian Ellis
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
7y
No matter what it is, it will never be enough. The real goal is to achieve personally freedom from myself, and giving myself the ability to have confidence within my own standards. To truly give my family the best life possible.
Financial freedom for me will be when I can do what I enjoy, 7 days a week with a smile on my face. If I can acquire that, then the money and financial security will come naturally.
3 Reply
Account Closed
Realtor · Boerne, TX · Member since 2015 · 75 posts · 51 votes
7y
@Aaron Bonne $40,000 monthly cash flow. I’ll never stop working no matter how much I have. The game is just to fun for me.
2 Reply
Nathan Forbes
Investor · Albany, OR · Member since 2017 · 10 posts · 3 votes
7y
@Erik Whiting love your answer I am right there with you. I have 4 kids and I would be good with 4-5k a month living a very good "frugal" life If I didn't have mortgage on personal home 3k would be just fine.
1 Reply
Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
7y
@Aaron Bonne

I definitely like my money in buckets, and I'm finding it much easier to earn that type of income running a sales business. I like working in this business, and i don't find myself working an unreasonable amount of hours... so I guess you could say I'm as passive/active as I would like to be right now.

Not that owning rental property is truly passive, as @Jay Hinrichs mentions. This is a huge misconception that many investors seem to latch on to. It's probably still much more passive than running a sales/marketing business. It also sounds less fun (matter of preference), for someone that doesn't want to be "retired" yet.
As for my plan with the funds. I couldn't quite tell you yet. I'm a rather immaterial individual. Beat up converse sneakers, costco t shirts, live in my starter home from 2012 and still have roomies paying the mortgage. I think the abundance of cash eventually gives you some reason to spend it, so certain "niceties" of life that appealed less to me before than they do now, simply because they don't seem as expensive as they once did. But there are no Ferraris or mansions in my near or probably far future.
Giving back is huge- and I can't tell you exactly how I plan to do it. I've made small and large gestures to friends and family all of my adult life, before I had money like I do now, and I continue to do so. I don't quite know how I'll do it on a public scale, because I'm still deciding on the causes that are purposeful to me. And although I've given out money and things of monetary value, I've observed with extreme accuracy that contributions of knowledge and experience have benefitted their recipients far more than contributions of monetary value. The old, "teach a man to fish" adage, ya know?
2 Reply
Todd Powell
Rental Property Investor · Corvallis, OR · Member since 2018 · 840 posts · 1k+ votes
7y
@Aaron Bonne
I have heard the answer “just a little more than I have” to the question, how much money is enough?
I have pondered how much is truly enough. At 52, I have worked for many years now with 3 jobs, solid W2 (30 years same industry), property managing my units, and doing roughly 40 flips. This has been exhausting! I have been asking as of late, how long do I want to report to the same W2 desk? How much monthly income is enough?
My biggest fear is health ins and associated costs. Here is my breakdown currently achieved;
1. $9500 monthly cash flow, 16 doors I own and manage. Ownership in 8 plex.
2. $2500-3000 monthly; 15% ownership in college campus 72 unit building.
3. $3000 monthly in 3 more years at age 55 from stock dividends not touching principal investments. I can legally start at age 55 if I commit to same monthly to age 59 1/2.
4. I have opportunity zone investment via Crowdstreet deal that is 10 year old, but some monthly income in roughly 4 more years.
So, lets just call this $15,000 a month and 10 years from now at age 62 I will take the weakest amount of social security. My concern is again rising health costs and what if something huge occurred to my wife or I ?
Also, building enough cash on hand reserves is important. My house is paid off and worth $540k.
I am blessed and have worked hard my whole life and family is most important to me. But, my freedom number? Thats a great question. Time is my greatest asset and do we all know how much we actually have ?
I think I can achieve my freedom number now, and how much is really enough, along with what is our future health going to afford is my bigger question.
4 Reply
Julian Dover
New to Real Estate · Glendale Heights, IL · Member since 2017 · 10 posts · 2 votes
7y
@Aaron Bonne
Goal: $30k
Still in college graduating in December already have a full time offer starting salary better than average upward of 75k but goal is to work with my step father who is a contractor and focus on MF homes!
0 Reply
Sara Blouin
Member since 2018 · 20 posts · 0 votes
7y
Originally posted by @Copeland Duhon:
@Bruce C. Am I seeing this right? Are you saying your wife’s meds are 22K per month?

Mine are about 12k

0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Account Closed:
@Aaron Bonne

I definitely like my money in buckets, and I'm finding it much easier to earn that type of income running a sales business. I like working in this business, and i don't find myself working an unreasonable amount of hours... so I guess you could say I'm as passive/active as I would like to be right now.

Not that owning rental property is truly passive, as @Jay Hinrichs mentions. This is a huge misconception that many investors seem to latch on to. It's probably still much more passive than running a sales/marketing business. It also sounds less fun (matter of preference), for someone that doesn't want to be "retired" yet.
As for my plan with the funds. I couldn't quite tell you yet. I'm a rather immaterial individual. Beat up converse sneakers, costco t shirts, live in my starter home from 2012 and still have roomies paying the mortgage. I think the abundance of cash eventually gives you some reason to spend it, so certain "niceties" of life that appealed less to me before than they do now, simply because they don't seem as expensive as they once did. But there are no Ferraris or mansions in my near or probably far future.
Giving back is huge- and I can't tell you exactly how I plan to do it. I've made small and large gestures to friends and family all of my adult life, before I had money like I do now, and I continue to do so. I don't quite know how I'll do it on a public scale, because I'm still deciding on the causes that are purposeful to me. And although I've given out money and things of monetary value, I've observed with extreme accuracy that contributions of knowledge and experience have benefitted their recipients far more than contributions of monetary value. The old, "teach a man to fish" adage, ya know?
Aheroshome.org is open for donations !!!! and its all BP based members giving back !! :)

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Troy Albers
Rental Property Investor · Fleming Island, FL · Member since 2019 · 85 posts · 104 votes
7y
@Brian Ploszay
Bingo. You nailed it.
0 Reply
Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
Originally posted by @Michael Ealy:
@Ola Dantis
I would say buy an island in the Philippines. I believe they have 7100 of them. Your wife will like that. 😁

No that say that... hmmmmm... 🤔🤔🤔
My wife will really like that...! 🤔
Let's go buy some Islands 🛫
0 Reply
Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
I am older than most here, so my answer will not follow the trend. I am financially free now. That being I have no debt, I have what I need and want. I travel when and where I want. Other than travel and a few hobbies, I live pretty simply and can afford what I want. I am fortunate!
MY retirement from my W-2 job pays my living expenses. The funds from my previous TSP account that was transferred to my now IRA account are there if and when I need or want to use them.
I am buying REO or otherwise distressed houses (and in one case a 4 unit apartment and 23 storage units), fix them and then rent them. I enjoy doing this. Its one of my hobbies that makes more money that it costs me:) I plan to hold these properties and all are debt free.
My teens are pretty involved and learning property pricing, cost of repairs estimating, accounting, painting, general repairs, floor installation, risk taking, people screening, etc. as we go. My daughter loves the house hunting experience! Both like the accounting part. They use their salaries from this to fund their Roth IRAs.
We live in a state with free college for the first 2 years. But my kids do not want college, my daughter wants to be a truck mechanic, my son a chef. Technical schools for them. So, other than medical, we do not have any major expenses on the horizon. (Other 2 kids are adults, nothing major expected there either.) Besides the insurance premiums, out of pocket health costs are about $9k a year, except for the years my daughter needs a medical test with a $8500 co-pay, then expenses double.
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Bryan MitchellPro Member
Rental Property Investor · Columbus, GA · Member since 2016 · 634 posts · 337 votes
7y
Replacement of existing salary, plus another 10K for good measure. I want to travel and live in Europe for half the year.
1 Reply
Bruce C.
Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
7y
Originally posted by @Sara Blouin:
Originally posted by @Copeland Duhon:
@Bruce C. Am I seeing this right? Are you saying your wife’s meds are 22K per month?

Mine are about 12k

Those yearly numbers just feel insurmountable, whether 144k or 240k. And I don’t want to even think what the overall cost was when we went through the initial getting hit by it and all the hospitals and doctors trying to get a diagnosis.

0 Reply
Lee Bell
Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
7y
$10K a month is a nice round number, and more than most people make and are used to living on. My income from appraising varies a lot sometimes. It is a feast or famine business. The months I have been in the $10k ballpark, were months where the money in the bank piled up. We don't spend that much normally. So, imho it's a nice goal and does not sound crazy high to us normal people, like $100k a month might sound.
Side note. I hear that most people that inherit a large sum or win a lottery or whatever, end up blowing it. Back to zero, or square one anyway.
0 Reply
James Mulcahy
Contractor · MA · Member since 2018 · 10 posts · 7 votes
7y
Originally posted by @Adam Britt:
@Aaron Bonne
Wow. I guess my goals are pretty dang low by these standards. I’m seeing 10-50k per month in here. I hardly make 50k per year on my full time job ...
If I could generate enough passive income that my enormous and completely useless student loan payments were covered ... I would quit my job literally right now. That’s 1,000$ a month.
I would keep working my second job (which is part time right now) and that could cover my living expenses. I don’t even care if I get to eat every day ... getting out of the 8-5 drag by covering debt is my primary goal.
I’m currently attempting to save a down payment to do that. But it has been a long process...

Adam, this could be done in the Boston market very easy. That’s one deal.
0 Reply
Adam Britt
Bessemer, AL · Member since 2017 · 49 posts · 30 votes
7y
Originally posted by @James Mulcahy:
Originally posted by @Adam Britt:
@Aaron Bonne
Wow. I guess my goals are pretty dang low by these standards. I’m seeing 10-50k per month in here. I hardly make 50k per year on my full time job ...
If I could generate enough passive income that my enormous and completely useless student loan payments were covered ... I would quit my job literally right now. That’s 1,000$ a month.
I would keep working my second job (which is part time right now) and that could cover my living expenses. I don’t even care if I get to eat every day ... getting out of the 8-5 drag by covering debt is my primary goal.
I’m currently attempting to save a down payment to do that. But it has been a long process...

Adam, this could be done in the Boston market very easy. That’s one deal.

Looks like I need to find a turnkey or something selling in Boston then!
1 Reply
Chase Cline
Investor · Corpus Christi, TX-Texas · Member since 2015 · 81 posts · 56 votes
7y
@Bruce C. Why would you ever not have health insurance?? That makes no sense in any way and it’s a terrible financial decision. Insurance is what keeps financially free people financially free
0 Reply
Scott Donahue
Rental Property Investor · Indianapolis, IN · Member since 2019 · 30 posts · 17 votes
7y
@Aaron Bonne
A wise entrepreneur once told me to NET 20% more than your living expenses prior to leaving your W2. This helps account for unexpected expenses, increases in living expenses (kids, kids education, health care, etc.). For me, that minimum net monthly cash flow is $9,240.
0 Reply
Marcus Johnson
Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
7y
@Aaron Bonne
This question makes no sense. So are we saying that if you cash flow 10k a month, but owe 1.2 million, how comfortable do you feel if risk is calculated properly. 10 k and debt free yes. Don’t fool yourself. Debt can bankrupt you quicker then you know.
2 Reply
Johnny Horner
Investor · Lebanon, OR · Member since 2016 · 32 posts · 23 votes
7y
@Aaron Bonne
Ours is $15,000 a mo to replace husband W-2 job by 2021 is our goal.
Current CF is $9800!
We have 19 doors, 4 Airbnb’s. Mix single family, duplex and multi.
Goal buy is to buy more multi and or syndicate.
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ 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.

I think Erik also said his house was paid off. A family can live more than modestly, even in San Diego, on $120K per year if your house is paid for. People talk about the cost of living being so high in CA, but it is mostly all housing. Once you eliminate that expense, you are not much different than those of us in the midwest. You pay the same prices on Amazon that I do. Your Netflix and cell phone costs the same as my plan. New car list prices are the same everywhere. Some local services like grocery and gas are a little more, but we are talking 10-15%. That is only because of employee wages being higher (because of housing) and CA taxes.
The other thing to remember is even though your housing costs may be over double, that is a tangible asset you are buying. Countless people in California have sold their home for a million plus dollars profit and retired in a lower cost part of the country. Some people literally retire only on housing sale proceeds.
Of course this is all a matter of perspective. One person may consider modest, driving a three year old BMW, eating out once a week and only taking one vacation a year. Another person my consider modest driving an 15 year old minivan, stopping at McDondals once a month and just having a weekend staycation.
It is all perspective, but I think most of us have more than we need and feel we have less than others. That is the challenge is when you get caught up in wanting more, because there is never enough.
3 Reply
Erik B.
Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
7y
@Russell Brazil
Curious why 7 mil and not 6 or 8.
1 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
7y
My financial freedom number.
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
Originally posted by @Erik B.:
@Russell Brazil
Curious why 7 mil and not 6 or 8.
A 5% yield on $7 million is $350k per year. Thats the income Id like to generate in addition to social security and my wifes pension.

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