Real Estate Investor · Raeford, NC · Member since 2014 · 137 posts · 39 votes
I have read different posts on here about guys finally leaving their cubicle and doing rentals full time…When do or did you know it was time to take the leap?
I am in the Military and have about 12 years left. My plan was to buy cheaper homes for the next 12 years and manage them while collecting a retirement check after I retire out the Military. With my body breaking down and the constant wide open pace in the Military the whole property management thing doesn't sound half bad. I would love to finish up my 12 years but you never do know when its time to exit.
Just curious to know or hear about some of your stories and when did you quit your job and pursue the rental management full time. If you have not quit what is your goal and when do you plan on quitting?
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
11y
I knew when I became too busy to do both things at once -- real estate and my full time job. I had to pick one or the other. So I chose real estate. I also had a spreadsheet I worked out all the numbers on, and went over and over that spreadsheet double, triple checking everything to make sure I was ready. It's been almost a year now and I have not regretted leaving my job even once.
Rental Property Investor · Vancouver, WA · Member since 2014 · 308 posts · 144 votes
11y
Hi Chance,
My personal goal is to be able to have my current salary, after taxes, RELIABLY, coming in every month, to be able to think about such a thing. Plus, have about 50-100k in savings for emergencies.
However, I know me, and I'll want even more money coming in after taxes to think about retirement from my current job. Luckily, I'm in a high paying job that I like, with people who are easy to get along with.
So, what I would do if I were in your shoes, is figure out how much you'll need per month after taxes, and shoot for that goal on a regular monthly basis. It would really suck to have a $5,000 net month, quit your job, then the next month have a $3,000 month and have to eat the loss.
Here's my monthly goals to help out:
Current age: 40.5
Current net monthly income from rentals $1,000 (roughly)
First goal: Replace monthly income (roughly $6k per month)
Second goal: $10k per month
Third goal: $25k per month.
I think once I hit around $40-$50k per month net, will be the time for me to think about retirement. If my calculations are right, with my current amount of rentals and their profits, I should be able to hit $50k in September 2024. :) But, that means I'm throwing every dollar of rent towards the next down payment, and my bonus checks towards down payments as well. Because "**** happens", I think that's likely a pie in the sky estimate. :)
Real Estate Investor · Raeford, NC · Member since 2014 · 137 posts · 39 votes
11y
@Account Closed
I have similar goals and you are right Id hate to eat that loss every month. I currently bring in the following:
$850 a month on my 1 Rental that I own.
I make 6k after taxes in the Military. I think I could live comfortably off of 5k a month. According to my calculations I need right at 6 houses paid in full to bring that in. I have a ways to go…
The good thing is my first rental is paid off and I am hoping that this will help me pay the next one off twice as fast. Then Ill have 2 houses paying on the 3rd house which will help me pay it off 3 times as fast. I like the idea of having them paid off, I don't like the risks of having multiple mortgages out there.
Real Estate Investor · Raeford, NC · Member since 2014 · 137 posts · 39 votes
11y
@Account Closed How long did it take you to get up to 5k profit monthly? I think once you get the first house paid off the others will come very fast because now the rent is compounding. You have one house paying for the next along with what you can put towards it. Id love to hear your story.
Real Estate Broker · Burlington, NC · Member since 2013 · 95 posts · 52 votes
11y
@Chance Cooper first of all thank you for your service! I am at $6000/month cash flow, we financed most of our properties though. I paid cash for my first one then financed the rest, we have a total of 20 properties which took us about 3 years to buy. Like @Account Closed I have a good paying W2 job which helped get us started....
Santa Clara, CA · Member since 2015 · 66 posts · 28 votes
11y
I did some flips between the buy and holds and was able to get to 5k a month in a bit under 5 years. Ended up selling my CA properties before the crash and invested in other less pricey markets. I got the timing right :) was pretty lucky.
Real Estate Investor · Raeford, NC · Member since 2014 · 137 posts · 39 votes
11y
Well we just paid off our first rental house so I am ready to see how well I do in the next 2-3 years. My intent is that this one that is paid off will help me get the next couple of houses rather fast.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
11y
I knew when I became too busy to do both things at once -- real estate and my full time job. I had to pick one or the other. So I chose real estate. I also had a spreadsheet I worked out all the numbers on, and went over and over that spreadsheet double, triple checking everything to make sure I was ready. It's been almost a year now and I have not regretted leaving my job even once.
Hello Chance. What a terrific question! I can not resist responding to your question. You will absolutely know when to quit your job. When you reach the point that you can sustain your life style by doing the work you love, you will naturally make the choice about what you want to do with a job. If you are enjoying your current job and real estate investing is a casual interest, then you have choices in that scenario.
One of the best things human beings have going for themselves is the ability to make decisions and to choose what to do next. No one can make that decision for you and the good news is, no one should. You get to decide about your business ventures. Please tell us in what area of real estate investing you are involved. What are you bringing to the investor table? Whatever it is, we all want to see what you have to offer.
Real Estate Investor · Chicago, IL · Member since 2015 · 13 posts · 3 votes
11y
Bill Sargeson
20 properties Cash Flowing $6k a month in 3 years is very impressive. I have similar goals, 10 properties by the end of year 2 and double that by year 3. What market do you invest in if you don't mind me asking? Do you use PM or manage yourself?
I like the idea of not having an end date in mind as to when you should quit your job rather have your Real Estate business be the judge of that. Once it either becomes too much work for managing on nights and weekends and you're rental income is at least equal to or greater than your W2 income then you should consider going full time. Otherwise, and this is just my way of thinking, you're losing the ability to compound future income by taking away the easiest funding source you could possibly have, your W2 job.
Glad to see so many people are able to Cash Flow as much as you do with as few properties as you have. Excellent business minds create excellent cash flow.
My husband is active duty Navy. My dream is that when he is to be able to retire on the cash flow form the houses and his military retirement (god/navy) willing.
We have used our transient life style to invest in real estate. We buy personal properties and self manage them when we leave. We also buy pure rentals that we rent out too from day one. We live off one income and save the other!
I love your goal! We don't do cheaper houses because we find the slightly more expensive ones highly leverage being paid on over the next 14 years meets our goals!