For everyone saying his net income = his W2 then quit are missing a lot of factors.
Make sure your reserves are higher than you think you need because
1) With COVID, underwrite for more bad debt and higher delinquency and vacancy
2) Property Taxes and Insurance can spike any given year. In Texas, they re-assess taxes every year, my 14 unit complex had taxes increase by 45% and even with a protest with a hired professional tax protest company, it did not go down 1 cent. That's an extra $5,000+ annually in operating expenses and will continue to climb in the future. Same with insurance, we just had 2 hurricanes in the span of a month in Southeast Texas and I got roof and fence damage. I can make claims and raise my rates or dig into reserve funds to repair these things.
3) CAPEX schedule and deferred maintenance. A new set of roofs or A/C units can wipe out your cashflow for the year if you don't have proper reserves.
That being said, I believe regardless of your position, once you quit you won't go back.
I personally know 7 local investors that have all quit their W2's at some point in the past few years and all have no plans of going back to any W2
I started real estate the same time I started my W2 back in 2016, and I still have my W2, even though I will make more money from flipping/wholesaling last year and this year than my W2 salary.
I don't touch my real estate income but rather just dump it all back into the business. I am thinking of quitting at the end of the year, but really have 2 main things I'm looking out for end of this year/start of 2021:
1) Election, COVID 2nd lockdown?, eviction moratorium expiring, will it renew?
2) Will lumber prices come down from the crazy highs (Put a halt to my new construction plans) and will appliances and A/C Units supply return to normal (currently severely backordered)(affecting my flips and apartment turnovers)
