I still owe some mortgage but have enough cash to cover
It is amazing how little most people really need to break out of the rat race, but unfortunately, they get sucked up into wholesaling and flipping meanwhile totally losing site of why they got into real estate in the first place. They basically leave one job for another that might have bigger checks, but also comes with waaaay more stress.
A repeat consulting client of mine sat down with me and it was the same story I've heard before;
Client: I made over $100K flipping houses, but I still feel broke!
Me: Taxes and overhead are killing you huh?
Client: I pay so much in taxes and all my first quarter profits will go towards overhead.
Me: How many rentals you own?
Client: None...
Me: Time to get yourself some rentals.
When I got into real estate, the first thing I did before I bought a house was to analyze a year's worth of expenses to see what it would take to set me free. $4,400/month was all I needed. I've since doubled that a few times just for insurance, but once the primary residence is paid off, there isn't much else left to pay for.
Punxsutawney, PA 路 Member since 2016 路 45 posts 路 16 votes
10y
A couple of things to watch for is having a job helping with financing, or will it help in the future ? Hurt not having a job in the future ?
Social security and Medicare impacts ?
Unemployment eligibility ?
401K ?
Employer rates for health insurance ?
That's just off of the top of my head. Before anyone tells me those things are covered by investments or self-employment, why wouldn't you what the advantages of both ?
Real Estate Agent 路 Sisters, OR 路 Member since 2014 路 1k+ posts 路 1k+ votes
10y
Daniel,
Great job man! This is only a suggestion but to ease you out of work and give you time further develop hobbies, you could become a realtor. You probably know quite a bit already. After a year or so I bet you will be so busy you will wonder where you ever found the time to work.
I still owe some mortgage but have enough cash to cover
I hope you have a good tax accountant, seeing as how nearly all your rental income is now pure profit, which is normally taxed at your top marginal rate. Also, why stop at 7? [Not tax advice]...
Rockford, IL 路 Member since 2015 路 343 posts 路 95 votes
10y
Daniel Peavey congrats. This is way awesome. I also am a blue collar industrial electrician trying to get to that point. I should have got in the game a lot sooner but will get there.
Good luck with your freedom.
I still owe some mortgage but have enough cash to cover
It is amazing how little most people really need to break out of the rat race, but unfortunately, they get sucked up into wholesaling and flipping meanwhile totally losing site of why they got into real estate in the first place. They basically leave one job for another that might have bigger checks, but also comes with waaaay more stress.
A repeat consulting client of mine sat down with me and it was the same story I've heard before;
Client: I made over $100K flipping houses, but I still feel broke!
Me: Taxes and overhead are killing you huh?
Client: I pay so much in taxes and all my first quarter profits will go towards overhead.
Me: How many rentals you own?
Client: None...
Me: Time to get yourself some rentals.
When I got into real estate, the first thing I did before I bought a house was to analyze a year's worth of expenses to see what it would take to set me free. $4,400/month was all I needed. I've since doubled that a few times just for insurance, but once the primary residence is paid off, there isn't much else left to pay for.
Ah, I'm new here so I must apologize. If someone plays devil's advocate, or examines possible pitfalls to unemployment, we need to get snarky and silence them. I will try to remember. No promises though.
I need to find the bylaws on here....................
I still owe some mortgage but have enough cash to cover
It is amazing how little most people really need to break out of the rat race, but unfortunately, they get sucked up into wholesaling and flipping meanwhile totally losing site of why they got into real estate in the first place. They basically leave one job for another that might have bigger checks, but also comes with waaaay more stress.
A repeat consulting client of mine sat down with me and it was the same story I've heard before;
Client: I made over $100K flipping houses, but I still feel broke!
Me: Taxes and overhead are killing you huh?
Client: I pay so much in taxes and all my first quarter profits will go towards overhead.
Me: How many rentals you own?
Client: None...
Me: Time to get yourself some rentals.
When I got into real estate, the first thing I did before I bought a house was to analyze a year's worth of expenses to see what it would take to set me free. $4,400/month was all I needed. I've since doubled that a few times just for insurance, but once the primary residence is paid off, there isn't much else left to pay for.
You have doubled your 4400 goal, a few times ??? That's pretty amazing. Congrats.
Investor 路 Arlington, VA 路 Member since 2012 路 84 posts 路 27 votes
10y
At 60, you have played your cards well. If you stay busy, you will forget what having a job was like. After all, how many people can say they truly want a job?
You have earned your FREEDOM. Live well!!! You will inspire many, myself included. :)
Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
10y
Sandra, thank you so much for kind words. I was raised to be a employee. I am not some guru, most over glamour the course, where average guys like me can't relate
I worked overtime on job and invested in assets. I worked after work, til 7 or 8 in evening. Taught myself most trades, saved much on contractors
Developer 路 San Diego, CA 路 Member since 2016 路 13 posts 路 7 votes
10y
When it comes to SS, if you've had W-2 contributions for 30 years then you're set, they take the highest 30 years of income into SS. If you wait a few years after your official retirement age then you can get a multiplier of up to 1.3x your base. If your income can sustain you thru those years your income from SS could go up significantly.