Rental Property Investor · Buford, GA · Member since 2019 · 31 posts · 7 votes
Hi everyone, first off thanks for taking time to review my post.
So I'm in a very unique and blessed situation where I own 9 rental properties, 1 of which is already paid off. I have approximately $65k in extra income after all expenses are paid each month and I wanted to know what you all would do with the extra money each month.
Keep in mind that I"m already maxing out my retirement accounts, I'm putting money away for my kids' 529's plans, etc. So here are my options (the way I see it). My main goal is to quit my full-time jobs and solely focus on real estate and use that income as my sole income among the other investment capital I bring in.
OPTION 1
Continue to pay off each house as fast as possible until they're all paid for and then start purchasing other assets i.e. additional single-family rentals, car washes, coin laundry facilities, etc.
OPTION 2
Take a % of my left-over income and use that to pay down the houses and use the remaining to pursue other assets (what I explained in option 1).
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
5y
@Chris Heppner Congratulations! As soon as you no longer have a regular job take advantage of being a full time REI for tax purposes-one of the best deals around. Having some debt is not bad. Contrary to popular belief cash sitting around is not bad either-especially at times like these. Keep your goals in mind and follow those. All the best!
Retire and buy more properties with that cash......Of course put away even more for a rainy day.....
So you’re saying quit my full time jobs and use the excessive cash flow from my rentals to purchase more properties?
Absolutely. If you really have a $65k month positive NET cash flow, then you have no reason to keep slaving away at your 9-5. You obviously have a knack for RE and you should expand that field.
Of course I don't know if your current job makes you $2 mil a year, or maybe you're a musician who loves what he does....? Other than that, yes....go get more properties!
Retire and buy more properties with that cash......Of course put away even more for a rainy day.....
So you’re saying quit my full time jobs and use the excessive cash flow from my rentals to purchase more properties?
Absolutely. If you really have a $65k month positive NET cash flow, then you have no reason to keep slaving away at your 9-5. You obviously have a knack for RE and you should expand that field.
Of course I don't know if your current job makes you $2 mil a year, or maybe you're a musician who loves what he does....? Other than that, yes....go get more properties!
So maybe I misstated my numbers a bit. I only have the $65k excess income because of my full-time positions. So if I quit all of those, that excess income goes away.
Investor · US · Member since 2017 · 71 posts · 80 votes
5y
After you quit your job your ability to gain financing may become more difficult, at least with traditional lending. For that reason I would focus on saving cash for buying power after quitting your job instead of paying down debt. maybe consider maxing out traditional loans before quitting.