Looking to replace my work income with rental income

Most Popular Reply

Scott Brockelbank Jr.Pro Member
Investor · NH · Member since 2018 · 36 posts · 21 votes
11mo

This is the goal of most as they start out but you have to understand your why first. At the endo of the day real estate is not as passive as it is advertised and as a few said before it can be a long journey. Just remember you are compensated for your risk. Long-term rentals may be lower risk than short term rentals but also offer lower returns. Next steps for you. 1. figure out your "why" 2. Understand what the best RE strategy is for your comfort level and goals. Good luck! 

3Reply
See this reply in the discussion

31 Replies

Jump to latestLatest
  • Trevor Higgins
    Lender · Charlotte, NC · Member since 2024 · 58 posts · 19 votes
    11mo

    Real estate can be a great place to do that! I call it my "alternative retirement strategy." Do you have a market and rental strategy identified yet? 

    0Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Trevor Higgins:

      Real estate can be a great place to do that! I call it my "alternative retirement strategy." Do you have a market and rental strategy identified yet? 


       I am open to any market. I am looking into finding properties and working with a lender to help leverage my money. Then a good property manager to keep it maintained and leased.

      0Reply
    • Trevor Higgins
      Lender · Charlotte, NC · Member since 2024 · 58 posts · 19 votes
      11mo

      @Steve Vassallo happy to help, feel free to reach out. 

      0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    11mo

    Over time it can, but you need a job to get a mortgage to buy a rental and most rentals will not make you rich quick.

    1Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Theresa Harris:

      Over time it can, but you need a job to get a mortgage to buy a rental and most rentals will not make you rich quick.


       Thank you. I will keep my job for a few more years and I have some money I can invest....was hoping over a few years I could replace my income with rental properties.

      0Reply
  • Jeremy Horton
    Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
    11mo

    Prepare for a long journey with a lot of properties - probably need ~50ish houses @ $500/month 

    Might make more sense to go with a business/commercial property at that point 

    SFH are essentially good for BRRRR/flip (equity capture at the buy), MFH is going to be where the cashflow is

    1Reply
  • Scott Brockelbank Jr.Pro Member
    Investor · NH · Member since 2018 · 36 posts · 21 votes
    11mo

    This is the goal of most as they start out but you have to understand your why first. At the endo of the day real estate is not as passive as it is advertised and as a few said before it can be a long journey. Just remember you are compensated for your risk. Long-term rentals may be lower risk than short term rentals but also offer lower returns. Next steps for you. 1. figure out your "why" 2. Understand what the best RE strategy is for your comfort level and goals. Good luck! 

    3Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Scott Brockelbank Jr.:

      This is the goal of most as they start out but you have to understand your why first. At the endo of the day real estate is not as passive as it is advertised and as a few said before it can be a long journey. Just remember you are compensated for your risk. Long-term rentals may be lower risk than short term rentals but also offer lower returns. Next steps for you. 1. figure out your "why" 2. Understand what the best RE strategy is for your comfort level and goals. Good luck! 



      Thank you Scott! That is good advice I appreciate it.


      0Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    11mo

    @Steve Vassallo

    It’s the long game. You can buy properties as quick or as slow as you want. Just make sure you pick properties in solid areas that cash flow. It’s good to have a goal, but my experience has been as soon as you get close to your goal you will most likely create a new goal. Hang in there it takes time to get going.

    Best of Luck.

    1Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Kenneth Garrett:

      @Steve Vassallo

      It’s the long game. You can buy properties as quick or as slow as you want. Just make sure you pick properties in solid areas that cash flow. It’s good to have a goal, but my experience has been as soon as you get close to your goal you will most likely create a new goal. Hang in there it takes time to get going.

      Best of Luck.

      Thank you Kenneth! That is good advice I appreciate it.


      0Reply
  • Elealeh Fulmaran
    Specialist · Member since 2025 · 483 posts · 270 votes
    11mo

    Good target—treat it like a math plan. Define your monthly number, then pick a buy box that reliably cash flows in 2–3 chosen markets. Build a small pipeline: 5–10 leads/week, run a quick noise‑to‑numbers screen using rent, taxes, insurance, conservative vacancy and CapEx, and only dig deeper if it pencils. Stack stable small multis or duplexes with light value‑add so you can lift rents and refi to recycle cash. If W‑2 is thin, line up DSCR or seller/private money for acquisition, then refi into the best long‑term paper once stabilized. Next step: write your buy box in one sentence and pull three active listings that match so we can run a fast go/no‑go.

    0Reply
  • Rohullah Sharifi
    Dr · VA · Member since 2025 · 154 posts · 34 votes
    11mo

    I would recommend investing in a Short-Term Rental (STR) property. Either you or your spouse can actively participate in managing it, which would allow you to claim any losses against your active income.

    0Reply
  • Steve Vassallo
    OP
    Member since 2025 · 15 posts · 11 votes
    11mo

    Thank you Theresa! I agree...I was prompted to create a post when I created my account here. Looking to invest in rental properties to ultimately replace my income :). I do love my job and plan to keep it for now 

    0Reply
  • Steve Vassallo
    OP
    Member since 2025 · 15 posts · 11 votes
    11mo

    Thank you Rohullah! STR like a vrbo? That is interesting I live in the Napa valley so I'm sure there would be lots of interest. Thanks again.

    0Reply
  • Nadeem Alamgir
    Real Estate Agent · Member since 2023 · 831 posts · 577 votes
    11mo

    Welcome to BiggerPockets @Steve Vassallo

    What markets are you looking at for rental income? 

    0Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Nadeem Alamgir:

      Welcome to BiggerPockets @Steve Vassallo

      What markets are you looking at for rental income? 


       I'm open to any market. I live in Nor. Cal but NC, Texas, Michigan seem like good markets

      0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 937 votes
    11mo

    @Steve Vassallo

    Hey Steve, replacing a full-time income with rental properties is definitely achievable, especially by focusing on markets with strong cash flow and undervalued off-market opportunities in the Midwest. Start by building a solid team of property managers, contractors, and reliable deal sources, and run your numbers carefully to protect cash flow while scaling. Many investors find that combining smaller turnkey or BRRR properties with occasional fix-and-flip deals can accelerate the path to replacing active income.

    [email protected]614-418-6081
    0Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Arman Ahmed:

      @Steve Vassallo

      Hey Steve, replacing a full-time income with rental properties is definitely achievable, especially by focusing on markets with strong cash flow and undervalued off-market opportunities in the Midwest. Start by building a solid team of property managers, contractors, and reliable deal sources, and run your numbers carefully to protect cash flow while scaling. Many investors find that combining smaller turnkey or BRRR properties with occasional fix-and-flip deals can accelerate the path to replacing active income.


       Thanks Arman! I'm open to any market if it can produce consistent cashflow. I appreciate your advice. Scaling would be necessary to build my confidence and knowledge.

      0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    11mo

    @steve vassallo How many rentals will you need to do that?

    What's the average monthly PROFIT from each rental you're estimating?

    Logical Property Management4.9454 Reviews
    WebsiteView Page
    0Reply
    • Steve Vassallo
      OP
      Member since 2025 · 15 posts · 11 votes
      11mo
      Quote from @Michael Smythe:

      @steve vassallo How many rentals will you need to do that?

      What's the average monthly PROFIT from each rental you're estimating?


       700/month/rental. 10 rental properties

      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
      10mo
      Quote from @Steve Vassallo:
      Quote from @Michael Smythe:

      @steve vassallo How many rentals will you need to do that?

      What's the average monthly PROFIT from each rental you're estimating?


       700/month/rental. 10 rental properties


       What will your average purchase transaction look like for a rental generating $700 of monthly profit?

      [email protected]248-209-6824
      Logical Property Management4.9459 Reviews
      WebsiteView Page
      0Reply
  • Steve Vassallo
    OP
    Member since 2025 · 15 posts · 11 votes
    11mo
    Quote from @Account Closed:
    Quote from @Steve Vassallo:

    Looking to replace my work income with rental income

    What part of the country are you in? Different parts have different requirements.

    I'm in SF bay area..Napa Valley specifically


    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    11mo
    Quote from @Steve Vassallo:

    Looking to replace my work income with rental income


    Definitely possible with BRRRR deals, flip deals, and use cost-seg tax strategey to help write off income. Good luck!

    [email protected]614-802-5698
    ReafCo | Ahmed Group 536 Reviews
    WebsiteView Page
    1Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    11mo

    That's a great goal and the one that most of us start with. My wife and I got to financial independence at 41 and 39. It took 16 years, 3 live in flips, 2 sold businesses, living below our means for a long time, consistently investing in real estate and index funds, moving to a lower cost of living area, and paying off our primary residence. 

    It's really difficult to actually pull off. You probably need 1.5-2x in "cash flow" that shows up on a spreadsheet to actually get there (i.e. if you need $10k to pay your bills, you need $15-20k of projected cash flow). There is ZERO cash flow on a 20-25% down payment right now if you are honest about expenses. You're probably going to spend 5-10k on closing costs and make ready expenses before you place a tenant. That will take years to pay back and doesn't count maintenance, repairs, and capex. It's a tough market and spreadsheet cash flow is very, very different than end of year actual numbers.

    I'm happy to help and have nothing to sell. Feel free to send me a message if you think that I can be a resource.

    2Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    10mo

    That’s a great goal, Steve and honestly, one that’s totally doable with the right plan.

    If your focus is replacing your work income, the big thing is not just earning rental income but keeping more of what you make. That’s where smart tax planning really helps. Using depreciation, cost segregation, and the right entity setup can make a big difference in how quickly your cash flow adds up.

    If you’re starting to build your portfolio, focus first on strong cash flow properties, then later look at strategies like short-term rentals or qualifying for real estate professional status to offset more of your W-2 income.

    You’re definitely on the right path, real estate is one of the best ways to turn active income into long-term, tax-efficient income.

    Good luck, and happy to connect if you’d like to talk through what that might look like for you.

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®5241 Reviews
    WebsiteView Page
    TaxMD® | Tax Planning Software
    WebsiteView Page
    0Reply
  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    10mo
    Quote from @Steve Vassallo:

    Looking to replace my work income with rental income


     The only other ways to do that is to start flipping, doing wholesale deals, or taking advantage of airbnb arbitrage. BUT only choose 1 method and go all in. 

    Once you do that, take advantage or REP status and you can also do a few 1031 exchanges and cost segs when you hold onto more assets.

    [email protected]614-802-5698
    ReafCo | Ahmed Group 536 Reviews
    WebsiteView Page
    0Reply
  • Eric FernwoodBusiness Member
    Realtor · Las Vegas, NV · Member since 2014 · 996 posts · 1k+ votes
    10mo

    Hello @Steve Vassallo,

    Long-term financial independence is the goal of most real estate investors. While it sounds simple—buy enough properties so the income replaces your current income—there's more to achieving financial independence than reaching a fixed dollar amount. The problem is inflation. Every time you shop, it costs you more dollars to buy the same set of goods or services. Unless your rental income increases faster than inflation, you will not have the needed dollars to pay inflated prices.

    For example, suppose you invest in a city where the average rental income increases by 2% per year and inflation averages 5% a year over the next 30 years, which is your anticipated retirement period. In this scenario, what will be the buying power after 10, 20, and 30 years? So I have a number to work with, I will assume that you need $10,000 per month today to maintain your standard of living.

    • After 10 years: $10,000 × (1 + 2%)^10 / (1 + 5%)^10 = $7,484
    • After 20 years: $10,000 × (1 + 2%)^20 / (1 + 5%)^20 = $5,600
    • After 30 years: $10,000 × (1 + 2%)^30 / (1 + 5%)^30 = $4,191

    So, even though your rent increased to $12,190 ($10,000 × (1 + 2%)^10) after 10 years, because inflation increased faster, $12,190 in 10 years will only buy what $7,484 will buy today. To maintain the same buying power in the future, your rents must increase to the following just to maintain the same standard of living.

    • After 10 years: $10,000 × (1 + 2%)^10 ≈ $12,190
    • After 20 years: $10,000 × (1 + 2%)^20 = $14,859
    • After 30 years: $10,000 × (1 + 2%)^30 = $18,114

    Steve, unless you invest in a city where rents increase faster than inflation, your buying power—what you actually live on—declines every day. So it's not just about accumulating enough properties to replace your current income today. You need properties in the right cities where rental income increases faster than inflation so you'll have the additional dollars necessary to pay inflated prices in the future.

    [email protected]702-358-8884
    FERNWOOD Team, KW VIP Realty520 Reviews
    WebsiteView Page
    0Reply
  • Camren BerryPro Member
    AZ · Member since 2021 · 86 posts · 14 votes
    10mo

    Hey Steve, this is an excellent goal. The best way is to figure out a good strategy to start with, and work towards that goal. I sent you a message with an option that can help. There are many out there, but the right strategy comes down to your circumstances. Keeping your job while you work on this goal is good advice. It can become tiring, but over time it will be worth it, and help bridge any gaps you face.

    [email protected]480-818-6158
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    10mo
    Quote from @Steve Vassallo:

    Looking to replace my work income with rental income

    Welcome to BP, Steve! Replacing your work income with rental income is definitely doable, it just takes some planning and the right market. One thing I’ve seen work really well is focusing on cash-flowing properties in growing markets where the numbers make sense from day one, rather than chasing appreciation alone. Columbus, Ohio is a perfect example—population and job growth are strong, major companies like Intel, Amazon, Google, Honda, and Facebook are expanding here, and you can still find rentals in the $120–180K range that hit the 1% rule and produce positive cash flow immediately. It’s also very landlord-friendly, which makes managing multiple properties easier as you scale, and the long-term appreciation potential is strong, so over time your portfolio can really replace your work income. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free