“How many rental properties do I need before I can quit my job?” I’ve been getting that question a lot lately.
Ever since I announced that I retired from my government job at the age of 32, people want to know how they start bringing in rental income with investment properties and ditch their 9-5 too.
SPOILER ALERT: The number of rentals doesn’t matter.
If you are planning on retiring early and living that #PassiveIncomeLife here is the question you REALLY need to be asking yourself:
“How much income do I need per month to support my lifestyle?”
Here’s the thing , 8 rentals in Washington DC will produce different rental income than 8 rentals in Detroit, but the cost of properties and the cost of living in both areas is different as well!
No matter if you are trying to retire early, or just be a successful real estate investor while you climb the ladder in you career- There really is no magic number of properties. That’s why it’s important that you implement a strategy that is specific to your situation.
>>>> Let me pause and say that there is NOTHING wrong with working a 9-5. If you love what you do, and have no plans on quitting anytime soon, and still want in one the rental property game, I’m here for it!
You need to figure out:
- What your living expenses are
- How much you need per month to sustain those expenses + saving
- How much rental income you need to make that happen
Your goal should look a little something like this-
“I want to own 8 rental properties” My goal is to make (X amount) in rental income per month.”
Once you’re clear on your monthly money goal, you can work backwards from there to figure out how many rentals you’d need to reach that goal.
Now that your clear on your goal, let’s talk strategy.
If you are curious what steps you need to take to reach your goal, I’ve laid out the step by step process to getting your first rental property here in this Action Plan Guide.