Transitioning out of a full-time job into real estate

5 Replies

My husband is working full-time at his job which pays well but is full of stress and long hours making it difficult to spend enough time on real estate. We want to get him out ASAP and transition him into working full time in real estate. I work full-time as well but my job is awesome so no complaints there. I ran some calculations and we could get by for the next few years with my husband reducing his income down to $50k a year (about half what he's making now). We currently have two properties under our belt. One buy and hold and another flip we're selling soon. We're planning on purchasing a multifamily here in Fort Worth where we live within the next few weeks and our long term goal is to build up our portfolio with buy and hold properties that can make us financially independent.

My question is, can anyone provide recommendations for career options that could work as the Interim solution whether part-time or full-time for my husband as we transition him into full-time real estate? The interim would ideally be related to real estate and help increase our knowledge. The reason we would be willing to take such a salary cut is to invest in more free time to focus on real estate. He's 5 years into his career in construction management so we have considered an inspector, appraiser, wholesaler, project manager of some sort but we need more ideas especially with jobs that have a flexible schedule. Any other insight/feedback would be great. Thank you in advance!

Starting anything new is not going to give you regular income for a little while.  And since you still need income from his side, I would check if he can drop to part-time at his existing job.  That would be ideal since they already know his skill set and are willing to pay him.

Thanks for your responses @Neil Aggarwal and @Edgar Barrera

The long term goal is creating a portfolio of multifamily properties and also creating a property management company to run them. With his construction experience, we see my husband managing the rehab schedule, overseeing contractors and maintenance and getting our properties ready to rent after acquisition. 

The trick is most people need their main gig income to build wealth. It helps in obtaining loans to buy more property. Look at the cash flow from your rentals. For most people they're lucky if they get $200-$300-$400/month per door in cash flow. So multiple by $300/door *12 and divide that into $50,000...and I get that you need about 14 properties to replace that $50,000 income. That does not calculate in vacancy rates and capex and maybe you need more than 14 properties. Investing is often a great way to build wealth, but in the beginning not so much income. Most of the successful people I know using REI as a side gig, not their full time job.

One idea that comes to mind is if he is good at construction and make ready, maybe he acts as a handyman or rehabber for other investors.  That allows him to rub brains with others in the business, see what they are doing or not doing to be successful.  Maybe he is able to partner on some deals with some of them.

I do not think you're in a position to quit. You need rental income to equal your living expenses BEFORE you quit. Not necessarily replicate, but what are your monthly costs? Fixed and variable? That is your target in rental income...