Any success stories of leaving the 9-5 job?

Question

I recently landed a new fully remote job with a managed care organization. Initially I felt extremely excited although the feeling quickly disappeared. I am coming to the realization that I don't want to work for anyone or feel stressed over deadlines, dealing with people/coworkers or waking up every morning anxious and tired. I want to fully commit to flipping houses and building rental income all while traveling and living freely. Is this possible? Any success stories regarding taking that leap of faith? If so, how did you do it? Where did you start? What advice would you give?

Ray Hage · Answer

I started investing in RE in 2015 ago but continued to work a W-2 until end of 2020. Yes it was a stressful and very busy few years but I am set up extremely well now and live freely. I still work now as RE agent but I don't have to. I just love doing this type of work and helping investors out as well.My biggest advice: Deal with the W-2 crap until you build up your investment portfolio and cash before quitting. Learn all that you can on your off-work hours. Don't finish work and then binge watch Netflix for 5 hours and then go to bed. You need to spend after work and weekends learning (not saying every night and every weekend btw). Get those longer term investments stabilized and flip a few houses before quitting.I feel you 100% on the waking up annoyed and dealing with coworkers. I don't miss that bs at all. Use this negativity as a motivation to learn, gain knowledge and do what makes you happy in terms of work. No one else is going to do it for you. You can do it so get motivated and you'll be very happy in a couple years.

Chris Seveney · Answer

Left my w2 last year. I was working real estate as a side hustle for several years. In order for me to leave, I wanted to make sure i had a years salary in savings as well as other investments providing some cash flow. The big thing to understand is that your cash flow iwll not be consistent. so make sure understanding this and managing your expenses with no income coming in is a big challenge.

Allan C. · Answer

@Stephanie Cortez have you thought about how you’d react to the stress of bad contractors, vacancies, unresponsive PMs, evictions, and bad tenants? I’m not suggesting to stop pursing REI, but make sure you are realistic about what color the grass is on the other side. There are a few trending posts from investors a few years ahead of you coming to that realization now. REI is a great journey, but you need a certain grit and hustle.

Stephanie Cortez · Answer

I appreciate the reality check from many who posted on this thread. While I am not so far ahead in my REI journey that I experience some of the aches and pains of what it may bring, I would much rather work for myself. I have been working in social services and "health related equitable care for all" type jobs. It has been very rewarding, but I am burnt out and tired. All the while, I have not been "minding my own business" and working to establish myself and my future. I am aware that realistically it takes grit and hard work. We don't escape this life without problems. However, if I get to choose the problems I have; it's REI and working for myself over someone telling me I don't have enough PTO to take so I can't take the day off even though I'm sick. If I am sick and have to work, it will be on MY terms. The fact is I am no longer passionate about the work I do at my W2. I never foresaw a future that did not include working for a company and getting retirement at 65. Now I see that I can choose different and I am not bound by those societal norms that tells you that is how life is lived. I'd rather not stress about my job depending on if Karen responded to my email so I can get the information I need to complete a report. Instead, I much prefer building my network, learning more about REI, dealing with contractors and managing money/budgets on my own projects etc. Thanks again for those who responded because it really does help put things into perspective and motivates me to push even harder.

Scott E. · Answer

Left my W2 in 2021 to focus full time on my real estate investments. A few comments... 1. I was a real estate investor/developer on the side for 11 years before I left my W2. That time was spent gaining a ton of experience buying, renovating, and selling properties. It was also spent building connections with contractors, lenders, architects, agents, title companies, stagers, etc. Plus along the way I was saving money like crazy to make sure I have a good emergency fund for when I finally decided to leave my corporate job. 2. If you are feeling stressed over deadlines, dealing with people/coworkers, and waking up every morning anxious and tired, then I have bad news for you. These feelings will be exaggerated 10x when you work for yourself and are dealing with contracts, contractors, and tenants. Sadly I'm not joking. I recommend you find ways to deal with that stress and anxiety before leaving your W2. 3. You will not be able to flip houses and build rental income all while traveling and living freely anytime soon. If you do everything right and work your butt off, you might be able to achieve this goal of traveling and living off of rental income within 10-15 years. Don't expect it any time soon. All that being said, leaving my W2 was totally the most exciting and rewarding thing I've ever done (in my work life anyway). My reply here might come off a bit harsh but just trying to set realistic expectations. It's a great feeling to work for yourself and not have to report to anybody... but it's also not as glamorous as they make it sound on the internet.

Stuart Udis · Answer

If the motivation behind leaving your W2 employer is to "travel and live freely" and believe real estate is the solution you are likely making the wrong career decision. This is especially the case in the early stages of building a portfolio and even more so if you intend on flipping homes which is more hands on. Unless you have a sizeable amount in savings to cover your living expenses without the need to tap into those funds to cover business related expenses the two groups who generally fair the best with the transition away from W2 employment who haven't already built a portfolio while employed are individuals who have a construction background, can self-perform their own construction where they can use the construction management fees as a salary from day one or alternatively individuals who have the backgrounds that allow for the immediate move towards larger fee driven syndicated opportunities where fees can serve as a runway. If you are planning to buy fix and flip properties and or small rental assets that don't possess heavy rehabilitation budgets where you are collecting the construction management fees it's very difficult to make the transition without a sizeable amount saved to cover living expenses. You will also be far less marketable in the eyes of a lender, especially without a track record.

Samuel Coronado · Answer

I think it is possible, but it's important to look at the reality of flipping and managing properties. Flipping can be very involved when you're trying to keep all the costs within scope and budget. I left my regular W2 in 2021. I was making mid 80s in a customer success role and left for a varierty of reasons. I immediately missed it because it was a great company and great people but was able to live on real estate activities either way. In 2022, I went back to a W2 job out of sheer boredom. I was clearing $9k a month after taxes but was incredibly bored, so I went back to work making a higher salary in a completely new field. I worked there for 4 months and quit for family reasons (they need me more than a job). During 2023, I've had 3 or 4 conventional W2s including the one I have now, but I don't need any of it. I start work and quit at will. It's kind of funny really. One of my selling points to hiring managers is I don't need a job. I want a job, so with me you'll have someone extra motivated to be there. I don't work a job unless I actually believe in the mission of the company. Most of my coworkers are there so they don't get evicted. There's a clear delineation in the work ethic there. My real estate income is now up to about $13,800 a month. I plan to get a couple more commercial units and then I'll probably go the way of Chad Carson and live in Spain a bit. I think it's important to have balance in life. People need to work to really be fulfilled, but things like the FIRE movement, Tim Ferriss, the drudgery of modern corporatism, etc has kind of made it seem that work is just a drag that should be avoided unless absolutely needed. I think finding a mission in life is tantamount. People hate working most times because they don't have a purpose in it. Staring at spreadsheets and everything is awful if you hate it and don't have a passion for the underlying mission. Wiping butts as a CNA is no one's dream job but it fills a vital need. Pulling 12-16 hours a day as a doctor is a huge benefit to society, but all anyone sees is their high student debt or bad work life balance. Not working isn't the goal. Working with a purpose is the goal.

Ray Hage · Answer

Hi Allen. Yep I agree with this. There is going to be some BS to deal with so people need to be mentally and financially prepared to deal with it. Had a tenant completely trash one of my apartments this year so that was a big unexpected expense to rehab it plus vacancy loss. Ouch! However, I will accept this reality over a W-2. Hustle and grit are necessary to do well within the RE world. The money comes easy sometimes but it also can go away easily too.

Jake Baker · Answer

Hi @Stephanie Cortez. I left my w2 last year to go full time into flipping. I agree with @Chris Seveney that you have to make sure your cash flow is right. I slowly acquired 2 airbnbs over 3 years that cash flowed really well and I was doing 5-10 flips a year with OPM (other peoples money) while working a w2. So I had enough cash flow from the airbnbs to pay for my shelter and food expenses plus I had a good amount in savings before I took the leap of faith.

Erik Estrada · Answer

Left my W2 back in 2022, to be a full time self employed mortgage broker, never looked back. This industry is filled with opportunities no matter which angle you take. But be ready to weather the storm when the time comes. Reserves are key!