Retired in my early 30s! 🏝

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Retired in my early 30s! 🏝

Ivan Loza
Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes

Help steer me in the right direction please.

I am a 25 year old school teacher who can currently save around 40k a year. Mostly from my salary, but I also own two SFH which I rent for $1300/month each with a mortgages of around $800/month, including taxes and insurance.

My goal is to retire by the age of 35 and focus my energy on either owning an apartment complex or commercial real estate. What road do you think would help me arrive to my destination?

1) Continue to buy and hold every time I save enough for a mortgage until I reach the 10 mortgage limit?

2) Go up to 4 mortgages then focus on paying the 4 properties off one at a time?

3) Take 1 mortgage out per year and invest the rest in index funds?

4) -Create an alternative road-

*Any year now I could fall in love, get married and have kids. This might substantially increase or decrease my savings potential.

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Don Gouge
Johnson City, TN · Member since 2017 · 209 posts · 367 votes
7y
Saving 30k a year from a teacher's salary is very impressive considering they all claim to be working for poverty wages!
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  • Riyad Qattum
    Specialist · Atlanta, GA · Member since 2017 · 26 posts · 17 votes
    7y

    @Ivan Loza You choose if you want to work 1 hour or 50 hours, I would highly recommend it, best of all if your doing it right getting good deals you will see some nice profits (I'm talking 5 figures), oh and I forget to mention you can get your first deal done within 30 days!!!

    1Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Josh Bast I just screnshotted your advice and will do my due diligence on said Robin Hood index funds tomorrow. I too get anxious in between purchases during my saving periods, hopefully through this new feat I can squeeze more growth out of my money, thanks!

    0Reply
  • Riyad Qattum
    Specialist · Atlanta, GA · Member since 2017 · 26 posts · 17 votes
    7y

    @Ivan Loza You should check out Max Maxwell on Youtube he also has FB group called Wholesaling houses elite, I highly advice you to join it a lot of motivation in that group

    1Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Riyad Qattum oh damn that’s definitely something to get excited about! This could even lead to my new full time “job”. Thanks for enlightenment

    0Reply
  • Riyad Qattum
    Specialist · Atlanta, GA · Member since 2017 · 26 posts · 17 votes
    7y

    @Ivan Loza No problem man, you just have to be consistent and don't give up, once you get your first deal you will want more

    1Reply
  • Sarah Fulton
    Real Estate Broker · Ardmore, OK · Member since 2019 · 17 posts · 27 votes
    7y

    I have the solution! I am you 10 years in the future. I taught for 4 years and then started pursuing real estate full time. Congrats on being able to save so much on a teacher salary. I was able to create a million dollar net worth in 10 years after graduating college.

    Buy and hold is a great strategy when you have extra money, but I found the quickest way to turn cash into more cash is to flip. In my area you can still get flips right off the MLS that will make you a tidy profit. You have summers off, and no family, so what a perfect time for a project! Just make sure you triple check all your numbers. I have friends in Dallas that flip properties if you're interested.

    As you get extra cash invest in rentals. After 10 years you should be able to retire and live off of your rentals. Seriously. I am 32 and have been to 30 countries and have taken 3 month vacations at a time.

    Now I’m settling down and doing the whole family thing. You’ll figure this thing out! You’re already asking the right questions.  I’m happy to help if you ever want to reach out. Good luck!

    11Reply
  • Edward Mendez
    Real Estate Agent · New York City · Member since 2019 · 14 posts · 9 votes
    7y

    @Don Gouge nice job man. Really motivating

    1Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    Work backwards. 10 years is possible.

    0Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Sarah Fulton I want to be like you when I grow up! Thank you for your kind words and generosity, and congrats on your massive success and new family.

    I will resist the urge to bombard you with questions and instead pick up a few books on flipping while consulting google.

    Yes that would be flipping awesome if you connect me with your flip investors in Dallas, thanks again, I will make sure to begin following you.

    1Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Ian Walsh @Don Gouge thanks guys!

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    7y

    My husband retired 2 years ago at age 43. The same drive that got him to that place, will also not allow him to be bored. He's got 97 projects waiting to be done at any given time. Retire. Live your best life. What's the worst that can happen? You go back and get a job because you're bored, only this time it doesn't matter how much you make, because you don't need the money. You can work for happiness instead of money. That's the best job out there.  

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    4Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Guy Yoes thanks, that’s all great advice! Yeah I wouldn’t be surprised if I don’t actually quit my job even after my passive income is enough to sustain me richly. I just know I would enjoy the power of knowing that I’m working for passion rather than necessity. But you’re right, many perks come with a te teacher’s calendar and I definitely don’t take those for granted

    0Reply
  • Luis Medina
    Peachtree Corners · Member since 2017 · 42 posts · 12 votes
    7y

    @Ivan Loza look around, you will find a HML willing to go 10-15% down from you. Also, use you existing equity to pick up some capital.

    0Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Luis Medina don’t hml typically charge an interest rate that is 2-3 times higher than a banks? But yes, I do hope to leverage my question once it is significant enough

    0Reply
  • Javier D.
    Investor · FL · Member since 2017 · 266 posts · 220 votes
    7y

    @Mindy Jensen

    Thank you it is great advice and something I’ve struggled with for the past year. I’m still adjusting and tweaking my schedule as to where only first few days of the month I come into office full time to meet with the property managers and rest of month just checking on cap ex work stuff like that. I do still have that drive for real estate and looks for deals, help others and enjoy lunches etc. My kids are little and I dont miss a school event or a dinner at home which is frankly the biggest freedom Im enjoying.

    I tried changing spark plugs on boat and ended up breaking a fuel pump so maybe your husband is a little more handy than me so he can find other avenues of accomplishment lol. Thank you again. I read these threads sometimes and get self conscious of my age but hear advice on here often that would just keep someone limited during their growing stage. I read above someone mentioning this is full time no matter what. Real estate can be passive. If you have 9 houses why not get a 10th which pays your property manager? Anyways thanks again.

    2Reply
  • Luis Medina
    Peachtree Corners · Member since 2017 · 42 posts · 12 votes
    7y

    @Ivan Loza yes they do. HML should only be use as short term to adquire property then refinance out after 3 months. Do a forum search for BRRRR strategy, you will get a bunch of info on how to properly fund you next investment.

    1Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Luis Medina ah I see, true, interest rate doesn't matter much when you don't plan on keeping the loan for too long. I will take your advice and look more into BRRR

    0Reply
  • Steve B.
    Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
    7y

    @Don Gouge don’t forget they really don’t have the summer off because “they are writing lesson plans and applying for grants”. But in the end it doesn’t matter because who can be expected to actually teach with any result when “the kids are coming to class hungry!”

    0Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Steve B. Let me add a little light. While we do attend trainings and write lesson plans in the summer we also have more than enough time to travel and drink cold ones at the beach. I work at a very low social economic elementary school, but it might ease your mind to know that we offer free breakfast, lunch and after school snacks to all. Not sure that this is true for every district across the nation though

    1Reply
  • Jorge Ydlibi
    Miami, FL · Member since 2019 · 35 posts · 26 votes
    7y
    Originally posted by @Ivan Loza:

    Help steer me in the right direction please.

    I am a 25 year old school teacher who can currently save around 40k a year. Mostly from my salary, but I also own two SFH which I rent for $1300/month each with a mortgages of around $800/month, including taxes and insurance.

    My goal is to retire by the age of 35 and focus my energy on either owning an apartment complex or commercial real estate. What road do you think would help me arrive to my destination?

    1) Continue to buy and hold every time I save enough for a mortgage until I reach the 10 mortgage limit?

    2) Go up to 4 mortgages then focus on paying the 4 properties off one at a time?

    3) Take 1 mortgage out per year and invest the rest in index funds?

    4) -Create an alternative road-

    *Any year now I could fall in love, get married and have kids. This might substantially increase or decrease my savings potential.

    Hey Ivan another newbie here so take this with a grain of salt as i'm still learning myself. I see you posted in several comments about needing 20% or more as a down payment for multifamily, from what I've read here on BP that is true only for properties that are 5-units or more. Keep in mind that with properties that are 2-4 Units (Duplex-Fourplex) you should still be able to get approved for FHA loans at 3.5% down. I believe the down side to this is that they have to be owner occupied for the first year, but if you do your due dilligence properly you can live in one of the units rent free and manage your property while living in it. Problem would be is that every time you acquire a new 2-4 unit property you would have to move as the loan requires it to be owner occupied. Someone also mentioned about not going in all the way with mortgages and becoming over leveraged which is what happened to lots of investors in 2008 when they lost a lot. Keep in mind also that many investors flourished as they had money in cash flowing B or C-class properties because their properties were still profitable. So that's why doing your due diligence and running your numbers several times is so important prior to purchase! Properties might lose their value/stagnate during a down turn, but renting out in a big metro area like Dallas-Fort Worth rent wise you should be safe as rents should either increase or remain the same, at least on my part I don't ever remember a landlord dropping my rent!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Kenneth McKeown:

    @Ivan Loza props to saving $30,000 in Dallas as a teacher. I know, personally, that's nearly impossible. How do you do it? I worked in a district in DFW and my paycheck every month was $3800/mo (with my coaching & masters stipend). Total for the year to be around $45,000. That means I would have to live off $15,000 for the year - or $1,250/mo. Would love to see your breakdown!

    I ended up leaving teaching/coaching(loved to coach) and pursued my real estate dreams full time. It's been an absolute blast and I wouldn't change it for the world, but nonetheless, it's impressive! 

    My route is #1. Definitely. Leveraging other folks money to make me money! Interest rates are great right now - so no use of #2 and paying them down. Now if your mortgage rates were 6%++ then that would be different. I currently have three loans out at 3.75/4.25/3.25 that are great. Now #3 I can't vouch for as that's not my where my expertise lies. If that's a niche you have and know a lot about, it may be a great route, but it wouldn't be for me. 

    Love your * at the end - as I'm single and very much could have the same happen to me, ha! Keep it up though man, love it!

     in the old days we had tons of teachers that were part time agents.... not so much now but they had a very warm market to work and had summers off. 

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    1Reply
  • Nathan E Reyna
    Member since 2019 · 1 post · 0 votes
    7y

    @Ivan Loza

    I think you should start rehabbing duplexes then go on to large scale investing , and start investing in hotels. Hotels are so lucrative

    0Reply
  • Kenneth McKeown
    Real Estate Agent · Dallas, TX · Member since 2016 · 432 posts · 341 votes
    7y

    @Jay Hinrichs I was part time for about 6-12 months then left. Not hard to match income of a teacher with a realtor as long as you're a hustler such as myself. I just knew I couldn't grow much being held to a 9-5 or really a 7-7. 

    0Reply
  • Randall Weatherall
    Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
    7y

    Always spend tomorrow money over today money. Is it possible for you to buy owner-occupant foreclosed units (you get the first ten days) and then get a killer loan/live in those for a year? I know a guy in town that does that with high-end rentals and then converts them to rent once the year is up and he's closed on his new one. That's been a great high-end strategy for him so far and it's his 'retirement' strategy as he's been in REI for 35+ years.

    0Reply
  • Ivan Loza
    OP
    Real Estate Agent · Dallas, TX · Member since 2017 · 136 posts · 141 votes
    7y

    @Jorge Ydlibi Yeah that’s definitely an option, especially if the numbers are right. Do banks not check to see if you already have other active primary residence loans? I’m not sure how that works

    I agree 100%. Another crash would mean lower property taxes if anything. I’m not too concerned with my properties values, more so cash flow. And like you said, rent is highly unlikely to go down in a metroplex which is growing as fast as Dallas is.

    0Reply
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