Hi,
Here´s a question to full time RE Investors:
According with the choosen strategy ( flip vs. buy & hold), in your opinion, how much capital/equity is the minimum required to become a successful full time RE investor?
Verdoclev,
I don’t think that capital or equity is the salient point in deciding when to quit your job. Cash flow is what you need to live on. When your profits (positive cash flow) from REI exceed the income from your job, then you MAY be getting close to quitting. However, don’t forget that you may be receiving expensive fringe benefits at work, such as medical insurance, retirement plan, etc. Carefully consider all the factors before quitting. One final thought - once you quit your job, your ability to get new loans may disappear. Therefore, you may need a track record of being self-employed for several years before you can obtain conventional financing.
Mike
I was expecting a somewhat more quantitative answer, but thanks anyway.
Let me put the question another way:
Imagine you aren t employed and with, let s say $300,000 in your pockets for investing. Would you search a job and begin part time REI activity or would you go full time?
i’ve made 3-4 times my salary in both of the past 2 years, but my cashflow is only a tenth of my salary. i’m sticking to my job until my wife graduates and replaces my income in january 2007. by then i expect to increase my cashflow to 80% of my current w2 income.