Can we "retire" in 3 years?

Question

Hi! I'm a new investor in Cedar Rapids, IA. We just closed on our first property, a 4-plex. We will have approximately 750/month positive cash-flow from this property. It looks like if we can accumulate 7 more properties in the next 3 years with approximately the same numbers, we'll be able to quit our jobs and move to Panama.

I already have about 40k in equity in my home, so once we sell that in 3 years, we should be able to buy our Panamanian home outright.

In Panama we will enjoy the first few months of "retirement," then  continue purchasing rentals (only this time in Panama) and doing the property management ourselves down there.

This sounds too easy. What am I missing? is this even realistic?

Thanks guys :)

Christopher Henderson · Answer

@Rebecca Olson

haven't got the hang of the tagging on this site yet for some reason...

nevertheless, I was listening to a podcast yesterday BiggerPockets Podcast 001 : Flipping Houses with Marty Boardman

and he illustrates in it how he was able to build quite a portfolio (8Mil$) and had it pulled out from under him.  he was able to regain it, but it was a lesson that you have to stay ahead of the market and prepare and adjust for its PITS.  He also illustrates that you should sit down and map out your goals and longterm and work backwards to your short term.  Map out what you can retire on, and how you can invest and pay for that goal.  Can you retire in 3 years???? I say absolutely, but it's not for me to say it's for you and I think if you do your due dilligence and plan for it YOU WILL BE ABLE TO SAY.....ABSOLUTELY!!! 
Good luck!!!!

Richard C. · Answer

The power of positive thinking turned me into a modern-day John Holmes.  For realz.

Marcus Johnson · Answer

@Rebecca Olson

So no investments such as 401k, pensions or mutual or index funds?  Just wondering, because what happens if you have high vacancy rates due to the market, where the cash flow is heavily dwindled.

Zach Daudert · Answer

I seriously considered Belize and visited/looked at property there back in 2005. But I ended up choosing to buy land and build in a house in Panama. I loved Belize but there were lots of reasons Panama made more sense for me - at least at that time (2006). I'll list a couple big ones here. One is that the infrastructure like roads, water systems, internet speeds/etc. were much more developed - even in rural areas. Also, even though I don't really like Panama City, having a resource like that - a pretty international city where just about anything is available is a huge benefit when compared to a place like Belize City. That factor is really amplified when you're living in a country rather than just vacationing. You do need to learn enough Spanish to get buy though.

What areas of Panama are you looking at investing in?

Eric Tait · Answer

We invest in Belize, specifically on Ambergris Caye, and on the Caye it can be more expensive relative to other places in Central America (it is relatively cheap by Caribbean standards though), but the mainland of Belize is known for more affordable living.

@Scott Nipp has it correct about all of the positive reasons why Belize is now on everyone's radar screen.

George P. · Answer

this statement annoys me to no end. can i learn to draw like the disney animators? no! no matter how much i believe it.

i know what you meant, but it just irks me..

Scott Nipp · Answer

Sounds like a great plan and CONGRATS on the first property.

I've never been to Panama, but I'm looking forward to a cruise that we are taking in the spring and we are going to hit Belize.  Personally, if I were to be looking at something like that Belize is definitely the place I would shoot for.  I know that in Belize English is the national language and it's an incredibly hot real estate market for US expats.  It also has arguably the best diving on this side of the planet, and that's one of the reasons I'm excited about the trip this spring.

Josh Mitchell · Answer

Account Closed sounds like you have the right direction and plan, now just have to execute. Can I make a recommendation? Leave one of the rooms in your 4plex open during the spring break season so you can get out of panama at that time! College kids are crazy! Haha! Good luck to you in your journey!!

Account Closed · Answer

@Zach Daudert, we are looking around Rio Hato... not specifically that city, but we do like that area. I'm not a huge fan of the big cities, but it's nice to be within a couple hours of one. I'm fluent in Spanish and am well versed in French and Italian. My husband could use some work in the Spanish arena though so we're kind of looking forward to using it more than just at home, hahaha!  I would pick Rio Hato to live, we'd probably invest closer to the city, maybe even out by that ex-pat town of David, haha.

@Marcus Johnson, ohh i follow you now. Yes, we have 401(k)s. However, we can't cash on those until we're well into our 50's. Won't help us much in 3 years when we're 34. We would be primarily relying on the rental income until we reach that age... good point, thanks!

Can we "retire" in 3 years?

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