FIRE by 40? 2M in a HCOL area possible?

[refi]

Hi!

So again not sure where I can post these updates, so I'll opt for here again. @Mods, please move where this make sense. Maybe they aren't even needed on the site?

I posted about 4 years ago @ 1.8M NW, my goal then was $2M and a paid off primary by 40 years old.

I posted again in May of last year @ $3.3M and contemplating call it quits and riding into the sunset.

So here I am now:

Age: 41, single, HCOL

Salary = 540k/ bumped up salary + side gig

NW = ~4.85m
Cash = $500k
Stocks = $1.5m
401k/IRA/HSA = $1m
Real Estate = 1.85m

Properties
Prop 1 - val - $350k, paid off, rent: $1700, HOA: $295; cash flow = $1100/mo
Prop 2 - val - $750k (owe $300k), rent: $2550, HOA: $500; cash flow = $300/mo
Prop 3 (Primary) - val - $550k (owe $200k)
Prop 4 - val - $350k (owe $180k) rent: $3600, cash flow = $1400/mo
Prop 5 - val - $700k (owe $360k) rent: $6000, cash flow = $2600/mo
Prop 6 - val - $600k (owe $280k) rent: $4240 cash flow = $1800/mo

Property Cashflow = $7200/mo, conservatively, considers vacancy loss and repairs.

Current Outgoing = $4500/mo = $2300 (food, utilities, services, stuff, etc..) + $2200/mo for mortgage on primary (14 years left on 15 year ARM @ 2.5%) and HOA

Updates:
- bought one more property
- boosted up equities on downturn
- refinanced a number of properties
- cashed out severance monies
- had the best time of life in between jobs
- increased salary at new job.
- still hate the rat race to the core.

Everything sounds great, but same questions as last year:

1. - These are my prime earning years, shouldn’t I continue to work, it seems I’m leaving cash on the table, but seems like I easily have enough?
2. - 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.
3. - Not married and don’t have kids, but haven’t ruled them out.

I'm thinking answers:
1. Per the other thread, I just need to know when enough is enough b/c this is the youngest and healthiest i'll ever be. I went back to work and can I say I truly despise it. Targeting calling it quits mid next year?

2. No, but if a deal comes where I can make a downpayment on it, maybe? At my increased salary, this would be more like 3-5 years now.

3. If it happens, let it come, but I can't let that hold me hostage to enjoying life more now.


Anyway, more ramblings, but it's been helpful to see my mindset and progression. I referenced previous feedback and it's been immensely helpful and comforting. Thank You!

 

[Aerides]

Well, if you want more money, sure, keep working. But have you answered what you want if not?

What will you do? What are your interests and hobbies - besides managing rentals, which is going to still be some work, unless you take advantage of the super hot RE market and liquidate, which doesn't seem like that's your plan.

You say you had the best time of your life between jobs, so you know what RE will be like. You don't mention expenses, beyond basics, but you desire a 2M home, so I'm not sure what your lifestyle looks like now. What would your discretionary look like? Shopping, travel, hobbies, etc. - beyond food service mortgage. Add that in, and then see. You look financially set so I would be looking to RE in your shoes. These might be your best earning years, sure, but they are also your best anything years.

 

[Dtail]

Perhaps work a few more years. Pay off all mortgages on properties and you can live off the cashflows, while not touching any stock investments.

 

[turbo89]

Your numbers indicate that you probably can retire (cash flow, not including investments covers your expenses)… but I agree with the above post, if I were making 540k/yr I would probably “stick it out” until my properties were paid off.

Then again it sounds like you may enjoy investing in property (and seem to be pretty good at it). So I suspect you may rather buy a few more… hard to blame you, I would too if I were thus successful in real estate!