Taking RE to the next level...

[Brad Clarizio]

Hi everyone,

I sat down yesterday to do my rental accounting for May, and I can't help but think the business model I've been following is scaleable, so I'm looking for guidance on taking my business to the next level (or not?).

Currently, I own 7 units in Columbus, OH  that I self manage while working a full time, long hour, relatively stressful job. No kids now, but I know that when my wife and I do, I'll come to a crossroads on my business vs. my job (likely sometime soon). All 7 of my units are profitable, and I'm currently sitting on around 300k in equity between the 7 houses (I've invested well and at the right time in Columbus). I've thought about the following:

1. Sell all 7, take the ~250k after expenses and do a 1031 exchange to use as a down payment on a 20+ unit apartment complex (~1M or so)- this option would bring my career decision making process quicker. 
2. Take on a partner- I've heard positives and negatives with this approach, and I'd be EXTREMELY cautious on who I took on, but I know that at some point, I can only take this beast so far. 
3. Do nothing- continue my existing model by acquiring 2 properties every 12 month period, knowing that I'll soon have to switch to having the properties managed as my career grows.
   

My ultimate goal is for RE to be my only career, however for now, I'm able to manage both. Although, certain days/weeks, it's been a bit too much and I know it's not sustainable. 

I feel as if I'm to the point where I'm no longer a beginner (I'm 26 but started at 21), but I'm not yet an expert. From a financial perspective, I'm doing well but I'm having an internal battle with what I WANT to do vs. what I feel like I should do. I want to do RE full time, so looking for guidance on what has worked for you on making that jump. Shameless plug: I'd love a mentor. 

Thank you,

Brad

[Joel Owens]

Brad figure out your "burn through rate" meaning the monthly amount you need to survive and would no longer require a job. Calculate in adequate reserves for your properties.

Now take stock of where you are currently at for example 2,500 cash flow versus needing 5,000 to quit that job.

Define your plan and then start working toward crossing those days off to reach your goal. Now instead of feeling "stuck and burned out" you see a clear path t breaking free that is getting closer and closer to happening.

If your job is not salary then you could possibly start taking more days off from the job as your cash flow increases. You might also take built up paid vacation and sick days etc. to reduce work days.

Additionally you could look at cutting even more expenses to quit the job sooner such as eating at home everyday versus spending 300 a month eating out etc. Cutting out cable to just have internet to save 100 a month etc.

Another option is to change fields and go work for a real estate company so that you switch work to something you enjoy even though it might not pay what you make now.