Can Net Worth w/Rentals Help Me Quit My Day Job?

Question

Hi all, glad to be here. I have one rental property and just getting into RE investing, and after evaluating several various niches, I’m really drawn to the BRRR method.

Question: How can one (really) quit their day job quickly with BRRR?

Context: My immediate goal is to be able to quit my day job, and be able to live off of at least semi-passive investment+rental income.

BRRR seems focused on net worth, which I understand for long term wealth. But net worth doesn’t food on the table, or let me quit my day job…income does.

If I’m only net-netting +$250/month in cash flow per unit, I’d have to rack up tons of units to be able to quit my day job, and then I’d potentially have a nightmare of managing that many tenants…or decrease cash flow even more by using a property manager.

Surely I’m missing some key component here?

So again, what am I missing about how one can potentially quit their day job by doing BRRR? Maybe you can point me to a video link or other resource in addition to your own experiences?

Thanks in advance!

Julio Gonzalez · Answer

Hi Dave, welcome to the community!

Eliott Elias · Answer

I quit my day job and have done 5 BRRRR's. I'm not going to lie, you have to be extremely patient. You won't make great income but will be creating tremendous wealth. I say for every 2 you BRRRR flip one, BRRRR'ing full time with no income will leave you hating real estate.

Bill B. · Answer

I don’t think BRRR wa about increasing net worth more than cashflow. It’s a strategy for people who can’t come up with a bunch of 20% downpayments. If you can, then you shouldn’t do BRRR’s. I never did. I simply collected the downpayment every 6-12 months and bought another property. Once I stopped buying properties I sent every single do,STR towards paying them off. I have about a dozen properties and when I had loans I probably made about $6,000/mo. Now that they are paid off it’s over over $200k/yr.

So if you value cashflow and have the money required for downpayments then simply do that. It was invented for people who didn’t have the savings or income to keep buying based on cashflow alone.

You forgot to put your location in your profile but certainly you can live well in many states with 6, and 12 is overkill.

Ps. All these numbers are after PM so I never put more than an hour a month in building my portfolio.

Conner Olsen · Answer

If you want more cash flow look into renting properties as STR or MTR. The cash flow is much higher than a traditional LTR. When thinking about how much money you need to live off of, I remember hearing David Greene say you should have double your expenses in passive income. So if you need 50k to live then have 100k in passive income to shield you from any unexpected expenses.

Adam Martin · Answer

BRRR is a way to scale faster but not necessarily a long term sustainable plan.  Currently I cash flow decently however make significantly more on appreciation for my rentals and refinancing has helped me scale faster.  Once I’m at 12 though that’s all I want and can sustain my lifestyle so I won’t refinance anymore unless it makes sense interest wise.  My payment will stay pretty level but increasing rents will increase monthly income.  Yes I will have dead money on the table but my goal won’t be maximizing every dollar it will be to be more conservative and generate sustainable income.  Your strategies may change as your lifestyle changes not unlike traditional investments.

Dave B. · Answer

Thanks so much for those tips, Elliot. Very helpful.

Dave B. · Answer

Thanks so much for those tips, Elliot. Very helpful.

Dave B. · Answer

Thanks very much Bill. That definitely does help with your perspective. And it makes more sense.

Dave B. · Answer

Thanks Bryan… I’m very new to this forum (literally Day 1) and posted in “Introductions” because I thought it the best place. I’m not yet familiar with the practices adopted by the group or how best to use it. Forgive me if I thought this the best place and time to ask my question.

Bryan Devitt · Answer

All the information you seek is on this forum and most can be found with minimal searching and reading. You are either unwilling to put in that much work, in which this isn't the path for you or you are too eager to jump in immediately with limited knowledge, in which this isn't the path for you. Take a deep breath and just read. If you get bored with the forums, there are literally entire books on this whole process sold by the owners of this forum at the top of the forum in the book store

Can Net Worth w/Rentals Help Me Quit My Day Job?

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