168: Rookie Reply: How Much Cash Flow Do You Need to Quit Your W2? w/Daryl Clinch

Real Estate Rookie

BiggerPockets

Entrepreneurship, Education, Investing, Business, How To

4.7 • 1.8K Ratings

🗓️ 26 March 2022

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

How much cash flow do you need to quit your day job and go full-time into real estate investing? You may have a big number in your head when we ask that. Maybe you’re thinking of replacing a six-figure salary with six-figure cash flow, but that's probably far from what you truly need to quit. In fact, you can quit with a lot less cash flow than what you’re being paid today! Joining us again is Daryl Clinch, who recently went full-time into real estate investing with his mentor and partner, Ashley Kehr. Daryl transitioned from seasonal employment to full-time investor after working at his job for sixteen years and deciding he needed a change. In today’s show, Daryl breaks down exactly how he prepared to quit, the cash savings he had, and the surprising amount of cash flow that allowed him to achieve occupation-independence! Looking to do the same as Daryl? Here are some suggestions: Find a mentor who can fast-track your knowledge and learn from them Partner up on deals with other investors and provide value whenever possible Calculate your true cost of living to find your minimum cash flow to quit Keep a strong safety reserve so you can focus on getting deals (not paying bills!) And more in the episode… If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). Links from the Show Rookie Podcast 164: Rookie Reply: How Do I Escape My 9-5 with Real Estate Investing?Real Estate Rookie Facebook Grou Rookie Podcast 147: 13 Flips as a Full-Time Flight Mechanic and Part-Time Lender w/ Anthony Michael Real Estate Rookie Podcast Daryl's Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-168 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie, episode 168.
0:07.6	My name is Ashley Care and I'm here with my co-host, Tony Robinson, for this week's
0:12.8	Rookie Reply. And welcome to the Real Estate Rookie podcast where we focus on all of those
0:18.8	investors who are at the beginning of their journey. Maybe you've got one deal, maybe you've
0:22.1	got zero deals, maybe you've got a couple when you're looking to scale. Either way, this is
0:26.4	the podcast for you. Before we get to the episode, let's hear a word from our show sponsor.
0:33.2	Ashley Care, you're not by yourself. You got somebody else sitting next to you again. I love
0:37.3	when we have a guest surprise in the podcast. Yeah, so I'm sitting here with Darryl Clinch again.
0:42.4	So if you guys listened, he was on two weeks ago for our Rookie Reply and that was the day that he
0:48.4	was on. He quit his job. Tony and I were actually getting ready to record and I said to him,
0:53.6	hey, actually, you want to be on the podcast so we can talk about that and he was put on spot.
0:58.8	So people seem to love his story and be encouraged by it, but they wanted to know more. They wanted
1:04.1	to know the numbers. So we brought Darryl back on to kind of break down the steps he took and what
1:10.4	the numbers look like to be able to quit job. So Darryl, first man, congratulations again. Yeah,
1:17.3	on taking that leap. I know that's both a scary and an exciting moment. But like I actually said,
1:22.4	I think we just wanted to dive a little bit deeper into your journey and kind of how you got to
1:26.4	that point. I think my first question, Darryl is, and this is one that that a lot of people struggle
1:32.7	with is how do I prepare for leaving that day job? How do I know if I'm ready? So a two part question
1:41.7	for you. First is from a financial perspective, what were you doing to kind of prepare yourself to
1:47.5	take that leap? And then the second part of the question is, how did you know that you were
1:52.1	actually ready to do it? So yeah, I actually didn't even think that I would ever be able to quit
1:59.2	my day job for the simple fact that I was there for 16 years. And when you think about something
	...

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