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.
Investor 路 Houston, TX 路 Member since 2014 路 128 posts 路 87 votes
10y
congratulations! I am working toward that as well. However, I also have trouble imagining not having a regular job. It is exciting and terrifying at the same time. Enjoy your new freedom!
Developer 路 San Diego, CA 路 Member since 2016 路 13 posts 路 7 votes
10y
The over 15k penalty applies if you are earning more than 15k (outside investment income) so if you decide to still work your day job while taking SS then you will encounter that penalty.
If you take SS at 62 you will get about 75% of your full benefit and you will lock it in. If you wait until 66 you will get 100%, if you wait till 69 you should get around 130% of your benefit.
Flipper/Rehabber 路 Wooster, OH 路 Member since 2016 路 40 posts 路 17 votes
10y
I always get a little excited when I read a topic like this... a little because of my own personal hopes & goals, but moreover, because I'm so happy to know that someone else was able to get off that hamster wheel. What a liberating feeling that must be. Congratulations & enjoy life!!
Atlanta, GA 路 Member since 2014 路 221 posts 路 109 votes
10y
Sean,
Great info. Question!! If I take social at 62, and continue to invest, will my social security still be excluded from penalty, even though I still produce more passive income??
Developer 路 San Diego, CA 路 Member since 2016 路 13 posts 路 7 votes
10y
Yes the passive income is excluded from the penalty calculation, I caution to consider waiting, remember its a guaranteed multiple increase if you wait vs taking the risk investing. Increasing your cash flow 57% from your income at 62 compared to 69 is a tall order in any investing. With SS you just have to wait 7 years... Food for thought.
Columbus, OH 路 Member since 2015 路 9 posts 路 0 votes
10y
Hey Daniel, Basically, mentoring is you sharing your knowledge and wisdom in a given field of work. Being an advisor to a younger less experienced colleague. Are you primarily a local investor.?
Investor 路 Katy, TX 路 Member since 2015 路 32 posts 路 19 votes
10y
Congrats my friend. I'm hoping to emulate your success. I have another 8-10 doors to go before I reach the take this job and shove it level. I appreciate you sharing- the motivation is electric.