Hi ! =)
TLDR - I met my initial goals, 2M by 40, but working OMY is always better, right? Maybe time for a sabbatical? Anyone call it quits late 30’s/early 40’s? How did it go for you?
Just making a quick check-in update, again, for my own tracking and seeing the growth in my thoughts and hoping for any feedback/guidance. Is this the right subheading to make this post?
Age: 40, single, HCOL
Salary = 320k/ bumped up salary + side gig
NW = ~3.3m
Cash = $425k
Stocks = $755k
401k/IRA = $630k
HSA = $6.5k
Properties
Prop 1 - val - $425k, paid off, rent: $2025, HOA: $295; cash flow = $1550/mo
Prop 2 - val - $740k (owe $315k), rent: $2550, HOA: $485; cash flow = $300/mo
Prop 3 (Primary) - val - $600k (owe $220k)
Prop 4 - val - $300k (owe $180k) rent: $3600, cash flow = $1400/mo
Prop 5 - val - $560k (owe $360k) rent: $5250, cash flow = $1800/mo
Current Outgoing: $4500/mo = $2000 (food, utilities, services, etc..) + $2500/mo for mortgage on primary (13 years left on 15 year ARM) and HOA
Some thoughts/ realizations:
- to stabilize remote investment properties 4 and 5, it took WAY longer than anticipated; around 2 years. I finally fully rented every unit and am cash flowing well now. Realized, If you want to rehab remote, it takes a while to turn and raise rents, but it has and I'm pretty glad I made those efforts. I am in contract to get one more and expect the same, but looking forward to it.
- I doubled down on individual stock picking (vs. ETFs). Luckily I've been tech heavy and it's done significantly better than the S&P500 (3x-4x better). Worked out in the current market.
- With this downturn, I was pretty happy holding that 10-15% (of my NW) in cash. It enabled me to pick up some things on the cheap. Again, WAY TOO MUCH CASH, but it made much more comfortable and in the end was better for me and allows me to pick up property deals.
- Still holding my low yielding properties, but hoping to do something with the property this year when my renter’s lease is up.
- Work is still pretty miserable, but I haven't actively pursued anything else. I don’t think moving jobs will solve things if everything I do is comparison to FI.
- I need to take a step back and look at life priorities. I think I’ve been overly focused at FIRE, I’ve lost sight of things that make me happy.
-------------------
Open Questions:
When is enough enough? My initial post target was $2M + primary real estate paid at that time = ~$2.6m. I’ve passed that and I’m still working. I could honestly just pay off my primary and just have an outgoing of $2,000 and be pretty well set; I don’t spend much except for food or travel. Main things that stop me:
- These are my prime earning years, shouldn’t I continue to work, it seems I’m leaving cash on the table?
- Do I want a better forever home? I could work 5-10 more years and I could live in a $2M home and have way more money.
- Not married and don’t have kids, but haven’t ruled them out.
Was thinking time for a sabbatical? Maybe time for some soul searching?
TLDR - I met my initial goals, 2M by 40, but working OMY is always better, right? Maybe time for a sabbatical? Anyone call it quits late 30’s/early 40’s? How did it go for you?
Just making a quick check-in update, again, for my own tracking and seeing the growth in my thoughts and hoping for any feedback/guidance. Is this the right subheading to make this post?
Age: 40, single, HCOL
Salary = 320k/ bumped up salary + side gig
NW = ~3.3m
Cash = $425k
Stocks = $755k
401k/IRA = $630k
HSA = $6.5k
Properties
Prop 1 - val - $425k, paid off, rent: $2025, HOA: $295; cash flow = $1550/mo
Prop 2 - val - $740k (owe $315k), rent: $2550, HOA: $485; cash flow = $300/mo
Prop 3 (Primary) - val - $600k (owe $220k)
Prop 4 - val - $300k (owe $180k) rent: $3600, cash flow = $1400/mo
Prop 5 - val - $560k (owe $360k) rent: $5250, cash flow = $1800/mo
Current Outgoing: $4500/mo = $2000 (food, utilities, services, etc..) + $2500/mo for mortgage on primary (13 years left on 15 year ARM) and HOA
Some thoughts/ realizations:
- to stabilize remote investment properties 4 and 5, it took WAY longer than anticipated; around 2 years. I finally fully rented every unit and am cash flowing well now. Realized, If you want to rehab remote, it takes a while to turn and raise rents, but it has and I'm pretty glad I made those efforts. I am in contract to get one more and expect the same, but looking forward to it.
- I doubled down on individual stock picking (vs. ETFs). Luckily I've been tech heavy and it's done significantly better than the S&P500 (3x-4x better). Worked out in the current market.
- With this downturn, I was pretty happy holding that 10-15% (of my NW) in cash. It enabled me to pick up some things on the cheap. Again, WAY TOO MUCH CASH, but it made much more comfortable and in the end was better for me and allows me to pick up property deals.
- Still holding my low yielding properties, but hoping to do something with the property this year when my renter’s lease is up.
- Work is still pretty miserable, but I haven't actively pursued anything else. I don’t think moving jobs will solve things if everything I do is comparison to FI.
- I need to take a step back and look at life priorities. I think I’ve been overly focused at FIRE, I’ve lost sight of things that make me happy.
-------------------
Open Questions:
When is enough enough? My initial post target was $2M + primary real estate paid at that time = ~$2.6m. I’ve passed that and I’m still working. I could honestly just pay off my primary and just have an outgoing of $2,000 and be pretty well set; I don’t spend much except for food or travel. Main things that stop me:
- These are my prime earning years, shouldn’t I continue to work, it seems I’m leaving cash on the table?
- Do I want a better forever home? I could work 5-10 more years and I could live in a $2M home and have way more money.
- Not married and don’t have kids, but haven’t ruled them out.
Was thinking time for a sabbatical? Maybe time for some soul searching?
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