TL; DR - How can I get motivated to pull the plug? $5.25M NW/42/M/Single
I've seen a number of these posts, so hopefully, it's not redundant, please move it if it is, just trying to get that motivation to call it a day!
STATS
42/M/Single/VHCOL
Salary = $540k
NW = $5.25m
Cash = $350k
Stocks = $1.4m
401k/IRA/HSA = $1m
Real Estate = 2.5m
Spend: $2500/mo for food/utilities/travel/hobbies + $2,300/mo for mortgage/tax/HOA (2.5% on 15 year, 12 years left). In retirement I could probably bump up spend to $4-5k/mo, but I’m generally not super spendy.
PROPERTIES
Prop 1 (Primary) - val - $600k (owe $200k)
Prop 2 - val - $350k, paid off, rent: $1700, HOA: $295; net cash flow = $1100/mo
Prop 3 - val - $750k (owe $300k), rent: $2550, HOA: $500; net cash flow = $150/mo
Prop 4 - val - $400k (owe $180k) rent: $3600, net cash flow = $1,200/mo
Prop 5 - val - $760k (owe $360k) rent: $6000, net cash flow = $2,500/mo
Prop 6 - val - $600k (owe $280k) rent: $6000 net cash flow = $3,500/mo
Prop 7 - val - $1.05m (owe $700k) rent: $9500 net cash flow = $2,800/mo
Net cash flow includes property management, vacancy, and repairs. So these are conservative and comes to $11,250/mo. This does not include taxes which I think I can offset by a fair amount of depreciation.
Roughly above are my numbers. I’ve made a number of posts (2017, 2020) in the past documenting how I got to where I’m at today. Reading back through posts, I see some sagely advice:
- If you are 40, working a demanding job and managing rental properties when do you plan on marriage/kids?
- This will be the healthiest (and youngest) you’ll ever be
- See how your properties handle downturns and how they perform over a long period of time before counting on that money
At 37, I was like - $2M and paid off Primary and I’ll be set was even contemplating quitting at $2M total net worth. Well, I’ve bit the bullet and have worked and got to a bit above $5M now and only think about how unhappy on the daily going into corporate America. I don't get the Sunday Scaries, I get the Every damn day scaries. My last lengthy post, I asked these questions as to why not at $3.3M -
- 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.
My thoughts now are I can think too much more on the What-Ifs? The math makes sense to cut the cord and see how things go. I’m generally a busy person, so I think I’ll still do my work on side-hustles and be super active and my rental income will cover my monthly spend and my equities should grow untouched.
My goal is to quit by the end of year:
- bank a little more salary
- 1031 either property 2 or 3 to something more cash flowing
- get any medical and dental work needed
Anyways, A lot there, but seeing if I'm not missing anything. Any insights would be helpful!
I've seen a number of these posts, so hopefully, it's not redundant, please move it if it is, just trying to get that motivation to call it a day!
STATS
42/M/Single/VHCOL
Salary = $540k
NW = $5.25m
Cash = $350k
Stocks = $1.4m
401k/IRA/HSA = $1m
Real Estate = 2.5m
Spend: $2500/mo for food/utilities/travel/hobbies + $2,300/mo for mortgage/tax/HOA (2.5% on 15 year, 12 years left). In retirement I could probably bump up spend to $4-5k/mo, but I’m generally not super spendy.
PROPERTIES
Prop 1 (Primary) - val - $600k (owe $200k)
Prop 2 - val - $350k, paid off, rent: $1700, HOA: $295; net cash flow = $1100/mo
Prop 3 - val - $750k (owe $300k), rent: $2550, HOA: $500; net cash flow = $150/mo
Prop 4 - val - $400k (owe $180k) rent: $3600, net cash flow = $1,200/mo
Prop 5 - val - $760k (owe $360k) rent: $6000, net cash flow = $2,500/mo
Prop 6 - val - $600k (owe $280k) rent: $6000 net cash flow = $3,500/mo
Prop 7 - val - $1.05m (owe $700k) rent: $9500 net cash flow = $2,800/mo
Net cash flow includes property management, vacancy, and repairs. So these are conservative and comes to $11,250/mo. This does not include taxes which I think I can offset by a fair amount of depreciation.
Roughly above are my numbers. I’ve made a number of posts (2017, 2020) in the past documenting how I got to where I’m at today. Reading back through posts, I see some sagely advice:
- If you are 40, working a demanding job and managing rental properties when do you plan on marriage/kids?
- This will be the healthiest (and youngest) you’ll ever be
- See how your properties handle downturns and how they perform over a long period of time before counting on that money
At 37, I was like - $2M and paid off Primary and I’ll be set was even contemplating quitting at $2M total net worth. Well, I’ve bit the bullet and have worked and got to a bit above $5M now and only think about how unhappy on the daily going into corporate America. I don't get the Sunday Scaries, I get the Every damn day scaries. My last lengthy post, I asked these questions as to why not at $3.3M -
- 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.
My thoughts now are I can think too much more on the What-Ifs? The math makes sense to cut the cord and see how things go. I’m generally a busy person, so I think I’ll still do my work on side-hustles and be super active and my rental income will cover my monthly spend and my equities should grow untouched.
My goal is to quit by the end of year:
- bank a little more salary
- 1031 either property 2 or 3 to something more cash flowing
- get any medical and dental work needed
Anyways, A lot there, but seeing if I'm not missing anything. Any insights would be helpful!
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