I've posted probably annually on this forum to get feedback. It's been helpful/cathartic to get some insights and next steps, so been super appreciative. This was my post last year and was hoping to get some more insights.
Every year, I talk about pulling the plug, but never do, so yet here I am again. Anyone on this One More Year syndrome? Anyway, I'm targeting anywhere between now and March 2024, my next bonus payout. Just trying to solicit anything I'm missing.
STATS
43/M/Single/VHCOL
Salary = $550k
Note: With new vest will be $615k next year
NW = $5.4m
Cash = $500k
Stocks = $1.2m
401k/IRA/HSA = $900k
Real Estate = 2.8m
Notes: Net worth hasn't moved much in the past 15 months as my equities have been hammered by pullbacks, tech. Offset by salary and real estate gains.
Spend: $2800/mo for food/utilities/travel/hobbies + $2,300/mo for mortgage/tax/HOA (2.5% on 15 year, 11 years left). In retirement I could probably bump up spend to $4-5k/mo, but I’m generally not super spendy.
Notes: Uptick in spending given inflation last year.
PROPERTIES
Prop 1 (Primary) - val - $575k (owe $180k)
Prop 2 - val - $600k, paid off, rent: $5400, net cash flow = $3,500/mo
Prop 3 - val - $750k (owe $300k), rent: $2575, HOA: $500; net cash flow = $150/mo
Prop 4 - val - $400k (owe $175k) rent: $3800, net cash flow = $1,400/mo
Prop 5 - val - $760k (owe $350k) rent: $6500, net cash flow = $2,500/mo
Prop 6 - val - $650k (owe $260k) rent: $7000 net cash flow = $3,500/mo
Prop 7 - val - $1.1m (owe $680k) rent: $10250 net cash flow = $3,000/mo
Notes: 1031'ed my underperforming property for Prop #2, was able to build 200k+ equity w/ value add renos. I was expecting 11,250/mo cash flow last year, but didn't happen. My repairs took way longer than expected and finally looking at stabilization in April of this year. With that said, $12k/mo seems super reasonable and conservative, but you never know with housing and vacancies.
REALIZATIONS
- I hate Corporate work life. I'm stressed out and I, honestly, don't think i'm too good at it. The job is not that hard, but I'm fed up with the grind and my Imposter Syndrome.
- Everyday, I'm getting older. I know many have read "Die With Zero", but it resonates more than ever given my mid-life/existential crisis. I can work and keep on making money but why? Maybe prestige? Padding this NW?
- I can't worry about if i'm going to marry or have a kid or might need to buy that big suburban house. Just let it be, I'll mostly career pivot or do something else, as generally, I'm not a person to sit still. Most likely will be in real estate.
FIRE TO DO LIST/PLAN
I see some checklists posted previously, but these are probably my key items.
- Get any long-term medical items addressed and checked out. Will be complete some dental work this year. Generally, very healthy and fit.
- Move equities into a 3-fund portfolio, this single stock picking has hammered me a big during this tech down turn, will offset the cap gain events w/ losses to limit tax impact. Currently about 60% of my portfolio is in ETFs and low-cost mutual funds. Will give me more peace of mind.
- Stabilize my current rental properties, address any long-term deferred maintenance. Must see three consecutive months with at least 12.5k+/mo cash flow
- Set up LLCs for properties, currently only have Umbrella insurance
- 1031 my property #3 as it's super low performing. It's in a VHCOL area with probably high long term growth, but my return on equity can be used much better elsewhere. Thinking more turnkey for this purchase.
- Set up Health Insurance plans post-FI
- Use HYSA as spend account, will have about 3-5years saved, but main goal is to use my RE income to support and not touch my equities.
- Thinking my target date will be March 2024, but thinking possibly sooner? Bonus will payout will be around $110k + $60k stock in March, so seems worthwhile to stay until then.
- I enjoy real estate, so I won't be liquidating any properties and I like the checks coming in monthly.
- I am very good at entertaining myself in the day. I love working out and have a network of friends to grab lunch with and have a varied hobbies and travels that will keep me busy for years. Had a 5 month sabbatical a few years back, barely scratched the surface of things to do. This is to address the question - what could you possibly do with your free time? A LOT
CLOSING
Anyway, any thoughts? feedback? anything I'm missing? Any holes in my plan? real estate risks? hyperinflation/recession? Call it a day? Keep this salary a bit longer? Thank You!
Every year, I talk about pulling the plug, but never do, so yet here I am again. Anyone on this One More Year syndrome? Anyway, I'm targeting anywhere between now and March 2024, my next bonus payout. Just trying to solicit anything I'm missing.
STATS
43/M/Single/VHCOL
Salary = $550k
Note: With new vest will be $615k next year
NW = $5.4m
Cash = $500k
Stocks = $1.2m
401k/IRA/HSA = $900k
Real Estate = 2.8m
Notes: Net worth hasn't moved much in the past 15 months as my equities have been hammered by pullbacks, tech. Offset by salary and real estate gains.
Spend: $2800/mo for food/utilities/travel/hobbies + $2,300/mo for mortgage/tax/HOA (2.5% on 15 year, 11 years left). In retirement I could probably bump up spend to $4-5k/mo, but I’m generally not super spendy.
Notes: Uptick in spending given inflation last year.
PROPERTIES
Prop 1 (Primary) - val - $575k (owe $180k)
Prop 2 - val - $600k, paid off, rent: $5400, net cash flow = $3,500/mo
Prop 3 - val - $750k (owe $300k), rent: $2575, HOA: $500; net cash flow = $150/mo
Prop 4 - val - $400k (owe $175k) rent: $3800, net cash flow = $1,400/mo
Prop 5 - val - $760k (owe $350k) rent: $6500, net cash flow = $2,500/mo
Prop 6 - val - $650k (owe $260k) rent: $7000 net cash flow = $3,500/mo
Prop 7 - val - $1.1m (owe $680k) rent: $10250 net cash flow = $3,000/mo
Notes: 1031'ed my underperforming property for Prop #2, was able to build 200k+ equity w/ value add renos. I was expecting 11,250/mo cash flow last year, but didn't happen. My repairs took way longer than expected and finally looking at stabilization in April of this year. With that said, $12k/mo seems super reasonable and conservative, but you never know with housing and vacancies.
REALIZATIONS
- I hate Corporate work life. I'm stressed out and I, honestly, don't think i'm too good at it. The job is not that hard, but I'm fed up with the grind and my Imposter Syndrome.
- Everyday, I'm getting older. I know many have read "Die With Zero", but it resonates more than ever given my mid-life/existential crisis. I can work and keep on making money but why? Maybe prestige? Padding this NW?
- I can't worry about if i'm going to marry or have a kid or might need to buy that big suburban house. Just let it be, I'll mostly career pivot or do something else, as generally, I'm not a person to sit still. Most likely will be in real estate.
FIRE TO DO LIST/PLAN
I see some checklists posted previously, but these are probably my key items.
- Get any long-term medical items addressed and checked out. Will be complete some dental work this year. Generally, very healthy and fit.
- Move equities into a 3-fund portfolio, this single stock picking has hammered me a big during this tech down turn, will offset the cap gain events w/ losses to limit tax impact. Currently about 60% of my portfolio is in ETFs and low-cost mutual funds. Will give me more peace of mind.
- Stabilize my current rental properties, address any long-term deferred maintenance. Must see three consecutive months with at least 12.5k+/mo cash flow
- Set up LLCs for properties, currently only have Umbrella insurance
- 1031 my property #3 as it's super low performing. It's in a VHCOL area with probably high long term growth, but my return on equity can be used much better elsewhere. Thinking more turnkey for this purchase.
- Set up Health Insurance plans post-FI
- Use HYSA as spend account, will have about 3-5years saved, but main goal is to use my RE income to support and not touch my equities.
- Thinking my target date will be March 2024, but thinking possibly sooner? Bonus will payout will be around $110k + $60k stock in March, so seems worthwhile to stay until then.
- I enjoy real estate, so I won't be liquidating any properties and I like the checks coming in monthly.
- I am very good at entertaining myself in the day. I love working out and have a network of friends to grab lunch with and have a varied hobbies and travels that will keep me busy for years. Had a 5 month sabbatical a few years back, barely scratched the surface of things to do. This is to address the question - what could you possibly do with your free time? A LOT
CLOSING
Anyway, any thoughts? feedback? anything I'm missing? Any holes in my plan? real estate risks? hyperinflation/recession? Call it a day? Keep this salary a bit longer? Thank You!
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