What is the minimum amount of cash you would want to start full-time investing?

[Sean Brennan]

Okay, suppose someone plopped you down in a new market with a bundle of cash and said start full time RE investing for a living! What is the minimum amount of cash you would require?

I know there are many different variables (availability of credit, ARV's, Rent's, strategies, etc.) so make them up and state them (but try to be realistic).

[Huggy Baird]

Originally posted by Des N:

Huggy Baird
There are few people in your shoes, myself included that make enough to be comfortable, do both because we ENJOY it and can handle the load . But the reality of the matter is this, the vast majority of folks contemplating the decision to move into R.E full time are in jobs very well south of the 6 figure earning threshold. In in that case, my suggestion is one to protect those individuals from premature failure in this business. This business is not forgiving if you don't approach with a robust structure.

Absolutely agreed on my situation. I'm very grateful to be so fortunate.

And I absolutely agree your advice has merit. Your advice has more to do with solvency though. It'll keep people from quitting their job only to find themselves going bankrupt. My advice isn't related to solvency, it's related to income maximization and knowing when it makes sense to quit job. The shooting from the hip formula I posted is intended to show where the additional income offsets the opportunity cost of lost wages.

In short, your good advice is all about cash flow statements and solvency. My advice is all about income statements and opportunity costs. Together they complement each other