How Many Rental Properties Do You Need to Quit Your Job? (Rookie Reply)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 6 December 2024

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

Many people invest for appreciation. Others invest for tax benefits. But some investors want enough monthly cash flow to replace their W2 income and help them quit their nine-to-five jobs. When can you go full-time with real estate investing? How many rentals do you need? Stay tuned! Today, Tony and co-host Garrett Brown are diving into the BiggerPockets Forums, and our first question comes from someone who has launched six vacation rentals in just five years. Should they diversify their portfolio? Are they ready to become full-time investors? We’ll share our thoughts! We’ll also hear from someone who’s thinking about selling an equity-rich property to pivot to short-term rentals in the Midwest. Listen in as we show them how to choose a market and set up their Airbnb business. But that’s not all. One investor has bought a rental property that is already booked months in advance. Can they cancel those bookings? Raise their nightly rates? Stick around to find out! Looking to invest? Need answers? Ask your question on the BiggerPockets Forums! In This Episode We Cover: When to leave your W2 job to focus on real estate investing full-time How to diversify your real estate portfolio without changing your strategy When to sell your rental property and tap into your home equity The top factors to consider when analyzing a short-term rental market How to manage your vacation rental portfolio in five hours per week (or less!) And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Ask Your Question on the BiggerPockets Forums Pre-Order the Book “Smarter Short-Term Rentals” Find an Investor-Friendly Agent in Your Area Real Estate Rookie 297 – Traveling the World Thanks to One $6,500/Month Rental Property Connect with Garrett Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-493 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Let's get your questions answered. What's up guys? I'm Tony J. Robinson and today I'm excited to be
0:04.4	joined by Garrett Brown for the short-term rental focused Rookie Reply.
0:12.9	Now, if that name sounds familiar, it's because Garrett recently joined the BP team as a full-time
0:17.1	content creator so you're likely seeing him across all of the different Big pockets channels now today we're diving into the bigger pockets forums to get your
0:24.9	questions answered now guys the forums are the best place to go for you to quickly get all of
0:29.4	your real estate investing questions answered by experts like me garrett ashley care and all the
0:34.3	folks in the bigger pockets community now let's get into the show so today's first question, I started getting into cabins in the smokies about five years ago. I'm now happy to say
0:42.3	that I own six cabins, four in the Smokies, two in Blue Ridge, and manage another cabin in Blue Ridge.
0:47.6	All of this is being done remotely. Now, we're working on building our seventh, which will be a one-bedroom tree house in the Smokies.
0:54.5	The income has really changed my family's life and given us a security blanket that a W-2
0:58.8	never could. I just wonder how far could I actually take it. We have one long-term rental.
1:03.7	So I'm wondering if I should start focusing on more long-term rentals to balance things out.
1:08.5	I'm also considering switching from W-2s to going out on my own.
1:13.1	I do, currently I do taxes and accounting in the next few years. Is there a metric or rule of thumb
1:18.7	someone has that is good when it's time to make these kinds of moves? So a lot to unpack here,
1:24.6	Garrett. And first, I just want to say to the person that asked this question, congratulations,
1:27.8	you know, six cabins, plus one that you're managing, plus one that you're building.
1:32.1	To do that in five years is remarkable.
1:34.7	But there are a couple questions here, Gary, that I think we should kind of pull apart here.
1:39.9	The first question is, should this person diversify out of short term rentals into long term rentals to quote unquote balance things out?
1:48.5	So what are your thoughts on that first piece, Garrett?
1:50.0	I'm always a fan of diversifying your portfolio.
	...

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