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Updated about 7 years ago,

Account Closed
  • Rental Property Investor
  • Portland, OR
16
Votes |
26
Posts

Zero to financial freedom as quickly as possible

Account Closed
  • Rental Property Investor
  • Portland, OR
Posted

Goal: Generate at least $2,500 net per month outside of my job and my wife's job.

Current Location: I live in a suburb or Portland, Oregon, where SFRs and small multiplexes are currently going for around $300k. (Of course, this wildly varies with specific location, condition, etc. I'm just using this number to illustrate that homes aren't $80k here, nor are they $700k.)

Occupation: My wife works within minutes (on foot) of where we live and loves her job. I can work from anywhere with an Internet connection. Her telecommuting options are very limited, and she has no desire to leave her current job.

Current Financial State:

  • Saving $5k per month to put towards investments or extra debt payments
  • Have around $110k in fixed-rated debt (all 6.5% interest or less)
  • Have around $40k in variable-rate debt (currently at 7.95%)

The Million 2.5 Thousand Dollar Per Month Question: If you were in my shoes, how would you reach my goal as quickly as possible?

We started out following some advice from Scott Trench's book, Set For Life. We moved to within walking distance of my wife's office to eliminate a 75-minute one-way commute, along with about $400 per month in gas money. We've got one car that we paid for in cash that gets 35-ish mpg. We've always been frugal, so our non-debt expenses are pretty minimal.

We moved into an apartment so that we could start reaping the new location benefits as quickly as possible, but we're actively looking for a small multiplex to house hack in order to further reduce expenses and get started on our investment journey.

But after that, things get much less certain for me. We could focus on paying off consumer debt (either all or just the variable-rate stuff), we could house hack another multiplex, we could start looking for SFRs, we could invest out of state in turnkey properties. We could do any number of things.

So what would you do?

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