I am leaving my day job in March an will doing sfh rentals full time about 55 sfh. Any tips on pulling the plug? I have lived off rentals for over a year.. maxed out 401 an roths.. nervous as heck for insurance.. was thinking about maybe cashing in my non retirement mutuals?

Houses owned free and clear? If yes, do it... no brainer. You'll be fine. Just buy into a group cost sharing plan.

Houses still heavily indebted? Mmmm... possibly still okay, but be sure you do have any refi's coming up. Banks luuuuuuv w-2 income for some reason much more than rental income.

Other than that, as long as you have plans for what else to do. Human are made for meaningful work, and I heard golf and fishing get boring after about a month or two. Don't run away from something you don't like. Rather, run toward something else that excites you!

I had the option to go to another branch when my W2 shut down.

Talked it over with the wife and didn't pursue any W2 after that.

Scared us to begin with, but it's all good now.

That being said I have about half the units you do and my wife still works so we have insurance thru her. Expensive but not as much as it could be.

After the first month or so I realized how much I hated the job I had. Well I liked the job but hated the BS politics that the higher ups dealt out.

Your local SBA office will have a group called SCORE. You can find their website at SCORE (Dot) ORG They have some awesome spreadsheets that you can use to help you determine your cash flow today and in April.

Bring your banker into the mix today and ask him what his concerns are. With 55 units, you will have just one full time job instead of two.

Congratulations Mitch!

I have been looking at my numbers and my kids would be better off inheriting the Roth, cash, then the real estate.

Not the results I expected, but, …

Anyway, watch out for your 401. It is a great investment tool and that alone can make you a multi millionaire. But, the 401 can be a tax time bomb.

There have been many posts on this site about how we have mis managed the 401 asset and are now facing big tax bills. We mismanaged the 401 asset because we did not analyze the growth of the account, the tax consequences of the account, and our retirement income (we are making more in retirement than when we were a W-2 employee enrolled in the 401 program).

As you plan your future, plan out your Roth conversions to minimize the required minimum distribution (RMD). (The Roth account is the best of your assets for your kids to inherit). Also watch out for Medicare tax (IRMA) when you do the Roth conversions.

Another thing to look at is what is your return on equity (ROE) for each property. On many of my properties, the rents have not kept up with the appreciation of the property. The value of the property has increased to the point that I am only getting a 3% return on equity. The local appreciation is another 3.8%, giving me a ROE of 6.8%. Not a very good return considering the liability I am assuming with rental property. Also remember the president wants to limit your annual rent increases to 5%.

Thanks for repies

Turning 48 in March

Tired of 20 years of public service

Have about 500k in debt, that's everything my primary at 4%, ram at 1.99% an remaining 300k about with a heloc on my primary at 7%

Mitch,

Congrats and GO FOR IT!!

You will say "Why didn't I do this SOONER!?"

I left MY job with 55 homes! but a few MILLION in debt!

Yes health ins is costly but so is your SANITY!

You were probably already paying part of your health ins out of your paycheck.

Don't be afraid of health ins! I just figured one of my homes would cover the cost.

SSI - don't worry about it, don't look back. Small thinking.

If you are smart enough to build this budding empire SSI will be a mere blip on your income.

As I saw this coming we went on a buying frenzy while the bank could still look at a stable job. I mention this with great caution as it put us deeper into debt, but just consider the approach and adapt to your situation.

It's about PROFIT, not number of homes. I teach ways to add $1000-2000 per year per home by just asking new leasees a few simple questions. Tonight's new leasee VOLUNTARILY added $140/month to my income on their ONE home. If they choose weekly rent that adds 1.4 more MONTHS of RENT in a 12 month period.

GOFERIT!

BRAD

Pull the plug. Health Insurance is the expensive part, without a doubt. We were able to purchase into my wife's insurance group when she retired at the group rate...as long as we never let it drop. Is that a possibility for you?

It is all about cash flow.. not the number that you own, just as Brad said. How long before some a are paid off?

I quite my other full time job at 59. Never looked back. Making more now than I did working full time.