W2 vs Full Time RE investor

[Haider Abdullah]

BP Community!

Hope you’re all killing it!

Quick synopsis on where we are at:

Started flipping 18 months ago with $200k in “friend” capital. Word got out, and now we are at about $3M raised (passively) and 17 flips, 2 Airbnb’s, 1 quad, and 2 buy/holds. Confidently, I can be at $5M by end of 2021 and on target to acquire 1-2 more Airbnb’s, 8-10 more flips, and potentially 10-15 unit apartment building (all in next 6 months)

W2, as we all know, has huge perks. I’m also benefitting from a decently high salary and moderately flexible work arrangement. BUT: I’m not my own boss, still have reporting requirements and because I’m in sales, have a target on my back daily. More over, I’m taking time away from the RE business.

I have 3 young kids so predictability of pay is important. But at what future cost? Daily, I’m contemplating my exit. However, with most betting that a correction/slowdown is coming in the RE market, is it smart to walk away now or ride it out until we see the dip, double down when/if there’s a fire sale, then bid farewell to the pay cheque?

I’m committing 30-35 hours/week to W2 (including commuting time (LA traffic is BACK) and probably 20 hours/week on RE. Add in kiddos and a wife, and I’m at 3-4 hours sleep/night MAX! Imagine I put 40 hours/week into RE?

I think it’s a question of: when is the right time and how do I know it’s right for me/us?

Would love to hear everyone’s thoughts - appreciate you all in advance!!

[Nick Belsky]

@Haider Abdullah

Sounds to me like you need to set a number.  Once you hit that number, transition.  You appear to be doing really well.  Awesome job!  Determine what your passive income goals are to be able to step away from the W2 life.  Self Employment also comes with many perks that you don't get as W2.  As I am sure you know, there are trade-offs, insurances being a big one.  

I left W2 perhaps a bit too early.  But looking back, I wouldn't change it for the world.  I more than likely would've stood by and kept things as they were forever due to uncertainty.  Glad I mustered up the confidence to walk away from the corporate world and have earned all the freedoms I am now enjoying.

Cheers!

Nick Belsky