When did you move full-time?

Question

Hello everyone.

For those of you who are full-time real estate investors. How did you when you could to go full-time? I want to go full-time, but don't have the assets and investment income to do so. Over the years to come how do I know when I can go full-time? I also know that staying at my W-2 longer will speed things up so maybe in a few years I could go full-time, but is it better to stay working for an additional year or two or three to further improve on your portfolio.

Would love some advice.

Thank you!

Gregory Acs · Answer

I think staying at your W-2 until your portfolio can consistently support your lifestyle is usually the safer approach. Your W-2 doesn't just provide income, it also gives you more financing flexibility, which can make it easier to qualify for loans and continue growing your portfolio. I'd want to see consistent cash flow, solid reserves, and a clear plan for the next few years before making the jump.

There's no perfect number that works for everyone, but running the numbers ahead of time can make the decision much easier. If you ever want to compare financing strategies or see how your next few acquisitions could impact your timeline, I'd be happy to help.

David Krulac · Answer

@Garrett Keith   When I had a full time job NOT in real estate, one year I bought 39 properties and sold 35 properties.  I was working 4  ten hour days at my job and had off every Friday, Saturday and Sunday and worked on real estate.  It was essentially working two full times jobs.  I don't recommend it. The next year I slowed down and only bought 21 properties and sold 31 properties. And the year after that I bought 24 properties and sold 27 properties.  And the next year after that I only bought 14 properties and sold 24 properties.

Two years after that I quit my full time job.

Micah Haworth · Answer

After buying my first couple of multifamily properties, I tried to make the jump to full-time. But we ran into several cash flow issues that required us to reinvest the funds from the properties and, in some instances, even pay the mortgage. I jumped back into working full-time to help fund some of the low times and then was able to keep needed money in the properties to set them up for the future.

I want to go full-time in real estate, and I get closer every day, but I've shifted my mindset when viewing my full-time income. I see it as a superpower that can be leveraged. Rather than going full-time as soon as you can afford it. Take those extra proceeds, save them, and leverage them into buying the next property.

I wouldn't look to go full-time until the rental income is double what your day job produces. But honestly, if you can swing it there is absolutely no shame in holding onto the day job unless you find that it's hindering your growth. Most of the time, leveraging Property Managers, Virtual Assistants, and other team members is going to give you a better ROI than giving up the job that provided the money to purchase your first couple of properties. Just follow the old adage, "if it ain't broke, don't fix it"; wait till it starts to break, then try and hire it before jumping in full time.