A small taste of freedom (what it's like)

[StevieB]

I've been a lurker here for a long time, and a 'wantchapreneur' for much longer.

Until just over a year ago I had a F*ck it moment. I broke up with my long term girlfriend, and her and all of the dogs moved out so it was just me in a 4 br 2 1/2 bath house that I bought just as the housing market was starting to come back at the deal of a price of 130k. My credit was average and my salary was average.

Instead of selling it I decided, you know what, F*ck it I'm going to throw all my shit in the basement and put it in AirBnB and if someone books I'll just crash in the basement (it's just me) and deal with it.

Since then I've had an occupancy rate of around 80-90% -- seriously almost every single day someone has rented it out upstairs. Now obviously I needed to do something rather than sleeping in an unfinished basement the whole time. So I took out a loan from my 401k and put a bathroom / bedroom in my basement so I at least could take a shower without going to work and taking one there at the office. Instead of moving out, I life hacked my house.

Now I can stay in the basement and rent the top 2 floors. This provided some decent income while working my job. One day in the past 4 months I took a brief vacation to Panama City beach. I booked a place on VRBO and while there though, wow how cool would it be to have a rental here that you can charge a premium for right next to the beach?

Not even a couple of months later, after refinancing my house to come up with the 20% down payment, I'm the proud owner a rental that has a track record of $2200/week rentals during the spring / summer months in Panama City Beach Florida.

Just tonight I was sitting outside of my back porch, literally 1 of 2 nights my place in GA that hasn't been rented this month thinking about work tomorrow morning. I was thinking about what would happen *if* -- just like I have in the past.

What would happen if I got fired? What would happen if so and so said this, or if so and so did this, or what *if* what *if* --- now in the past being a slowlaner, we have these worries.

The difference this time is .... ok so what if I got fired?

Who cares?

Why?

I make as much if not more in rental income than my job itself.

I get fired? I don't give a shit. They lay me off because the business tanks? Whatever.

I could quit tomorrow if I really wanted to and still live just as well as I did before the rentals.

I have to tell you, not worrying about things at work or caring if they fire you is F*cking priceless.

 

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[juan917]

congrats man!

 

[C-Jay]

I'm not where you're at, but I agree with this completely. Sounds like you've hit a couple good ones. Glad to hear.

Before I sorted out my finances and stopped spending like an idiot, I always carried a balance on credit cards, never had disposable funds, zero savings...all while making an above average salary with great benefits. I was SO stressed at work, because I knew that if something went wrong, I'd be in serious trouble even if I managed to get another job right away, because even a one or two week gap in paycheques I was not prepared for.

It's amazing now, I have a good chunk (and growing) of savings, am actively working on generating other streams of income, and my stress-level at work is absolutely incomparable. I could go unemployed for months without a dip in my quality of life. It's an awesome feeling when you don't need to count on the next paycheque to live.

 

[StevieB]

congrats man!

Thanks!

I'd also like to add -- that during this process, there was tremendous pressure on me to 'buy stuff'..

All of my friends were buying boats. They even went a whole season of not inviting me to parties because I didn't have a boat. They literally said to me, dude you use our boat when we go out, why do you get a boat to?

Could I have bought a boat? Sure I could have. What are they doing with their boats... sitting in the garage most of the time.

Instead I bought a house and rented it out, I finished my basement so I could rent out the top 2 floors.

I listen to MJ's books in my car when I drive every day. They listen to music.

They now are shackled to their jobs, I could quit mine tomorrow if I really wanted to and still be able to pay all the bills and more.

The difference was a mindset shift.

Instead of purchasing depreciating assets, I purchase appreciating assets. Instead of spending money on assets that have no future income prospects, I purchased assets that can move money my way.

Same starting incomes, different choices, different mindset.

I'm not living the fastlane by any means, but I don't need to worry about my job either.

 

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[StevieB]

I'm not where you're at, but I agree with this completely. Sounds like you've hit a couple good ones. Glad to hear.

Before I sorted out my finances and stopped spending like an idiot, I always carried a balance on credit cards, never had disposable funds, zero savings...all while making an above average salary with great benefits. I was SO stressed at work, because I knew that if something went wrong, I'd be in serious trouble even if I managed to get another job right away, because even a one or two week gap in paycheques I was not prepared for.

It's amazing now, I have a good chunk (and growing) of savings, am actively working on generating other streams of income, and my stress-level at work is absolutely incomparable. I could go unemployed for months without a dip in my quality of life. It's an awesome feeling when you don't need to count on the next paycheque to live.

Yup. I could even go further, I could almost retire if I would be satisfied with around a slowlane yearly salary (because that's what my rentals make combined). I was talking to my friend who was like, dude you could retire now... no not really. Yes *I could* but would live off an under 100k/yr salary that's dependant very largely on a good economy so the rentals will stay booked.

But yes, it's very comforting knowing that you could get fired tomorrow without the dread of knowing if you can pay the bills. It takes away the worry and stress of the 'job' -- which is priceless. Completely different feeling than before when you rely solely on your job income.

 

[Philip Marlowe]

That kind of peace-of-mind is priceless, as you say. Nice work. And way to avoid the 'buy stuff' treadmill.

I find that a lot of people let their hobbies own them. They buy something, use it once or twice, and then it just sits in a drawer or the garage or outside under a tarp haunting them until they sell it at half the value.

 

[Christopher777]

Congrats man. What’s your next investment?

 

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[StevieB]

Congrats man. What’s your next investment?

I can give a ton of advise on real estate, but my next investment is in the internet world (I have a progress thread if you're interested).

Real estate is tried and true, but it takes a lot of money and is very slow if you don't have a lot capital. However in small numbers it's very easy to start out in that can buy your freedom from a single income, like I have.

It's actually fairly simple with the information. Do a lot of research and purchase home a very good price. Ensure you can live in the home and rent out unused space. This can be done with a duplex, or a home with a basement.

Do this and you can live "mortgage free". You can live without the large expense that most of the masses fret over -- their mortgage.

A lot of slowlaners think that living 'the business life' is very difficult, yet this one small hack can help you free yourself from societies norms.

 

[sparechange]

ah that sounds nice, to bad a house in vancouver starts at 1-2m LOL

4br 130k? what in the hell, where do you live?

 

[sparechange]

Vancouver real estate: "cute starter home" for $2.8 million a starter home for whom?

 

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[StevieB]

You're missing the point. This isn't about how I did it, but the mindshift.

 

[million$$$smile]

Vancouver real estate: "cute starter home" for $2.8 million a starter home for whom?

Wow. I'm sure vacant lots are a premium in those areas, but I would certainly be on the lookout for any if available.

Also, it would be interesting to see if there are homeowners that are delinquent on their RE taxes. I am not by any means qualified but it would seem to me possible opportunities...

 

[sparechange]

i understand the point, myself have experienced this a few times although im still not fully free.

 

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[sparechange]

i guess you could say you are fully unscripted , congrats!

 

[StevieB]

Yup you see this is a perfect example --

Were I live you can't get anything for under 1 mil and rent it out!

This type of thinking is what always confines us into small boxes.

I know many area's, even now you can grab some real estate for the 250k range and make 350/night.

 

[RogueInnovation]

Yeah I'm in a similar boat mindset wise
The problem isn't "me" and my finances
More just now not having enough to sculpt the environments of others I want to help

 

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[MJ DeMarco]

I make as much if not more in rental income than my job itself.

I get fired? I don't give a shit. They lay me off because the business tanks? Whatever.

I could quit tomorrow if I really wanted to and still live just as well as I did before the rentals.

I have to tell you, not worrying about things at work or caring if they fire you is F*cking priceless.

Congratulations on getting a dose of entrepreneurial heroine.

Stories like these; the light bulb moments, the realization of independence, the excitement of autonomy, never gets old.

 

[JAJT]

Have you ever considered renting your units out full-time or do you prefer the AirBnB route?

I would imagine (guess) that airbnb has a better payout given the temporary nature of the stays but the allure of steady, constant income with less management would also seem highly appealing.

 

[C-Jay]

Have you ever considered renting your units out full-time or do you prefer the AirBnB route?

I would imagine (guess) that airbnb has a better payout given the temporary nature of the stays but the allure of steady, constant income with less management would also seem highly appealing.

You can pay a property manager to run your Airbnb and still take in more cash after expenses due to the huge margin difference between airbnb/conventional permanent tenants. Permanent tenants pay market value. Tourist temps pay tourist market value (obviously this is dependent on location on the Airbnb, but is certainly the case in touristy destinations like PCB).

 

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[StevieB]

Have you ever considered renting your units out full-time or do you prefer the AirBnB route?

I would imagine (guess) that airbnb has a better payout given the temporary nature of the stays but the allure of steady, constant income with less management would also seem highly appealing.

Airbnb pays way more than long term.

Long term I'd be looking at a profit of 3-400 / month.

Airbnb profit is upwards of 1k on one unit, and the beach rental in peak season is closer 6k. It's more work because you have to schedule cleanings but you can get someone to manage it if you want for 10% each booking.

Sent from my SM-N910V using Tapatalk

 

[Envious]

I've been a lurker here for a long time, and a 'wantchapreneur' for much longer.

Until just over a year ago I had a F*ck it moment. I broke up with my long term girlfriend, and her and all of the dogs moved out so it was just me in a 4 br 2 1/2 bath house that I bought just as the housing market was starting to come back at the deal of a price of 130k. My credit was average and my salary was average.

Instead of selling it I decided, you know what, F*ck it I'm going to throw all my shit in the basement and put it in AirBnB and if someone books I'll just crash in the basement (it's just me) and deal with it.

Since then I've had an occupancy rate of around 80-90% -- seriously almost every single day someone has rented it out upstairs. Now obviously I needed to do something rather than sleeping in an unfinished basement the whole time. So I took out a loan from my 401k and put a bathroom / bedroom in my basement so I at least could take a shower without going to work and taking one there at the office. Instead of moving out, I life hacked my house.

Now I can stay in the basement and rent the top 2 floors. This provided some decent income while working my job. One day in the past 4 months I took a brief vacation to Panama City beach. I booked a place on VRBO and while there though, wow how cool would it be to have a rental here that you can charge a premium for right next to the beach?

Not even a couple of months later, after refinancing my house to come up with the 20% down payment, I'm the proud owner a rental that has a track record of $2200/week rentals during the spring / summer months in Panama City Beach Florida.

Just tonight I was sitting outside of my back porch, literally 1 of 2 nights my place in GA that hasn't been rented this month thinking about work tomorrow morning. I was thinking about what would happen *if* -- just like I have in the past.

What would happen if I got fired? What would happen if so and so said this, or if so and so did this, or what *if* what *if* --- now in the past being a slowlaner, we have these worries.

The difference this time is .... ok so what if I got fired?

Who cares?

Why?

I make as much if not more in rental income than my job itself.

I get fired? I don't give a shit. They lay me off because the business tanks? Whatever.

I could quit tomorrow if I really wanted to and still live just as well as I did before the rentals.

I have to tell you, not worrying about things at work or caring if they fire you is F*cking priceless.

Holy shitballs. Congrats! I would love to be in that position, very inspiring!

 

[unaided]

Something I learned from Ramit Sethi was that most of us don't want to quit our jobs, we want the OPTION to quit our jobs and that sir is what you have now, congrats!

You will find that you may actually be more confident at work, speak your opinion a little more (constructively), have an extra difficult conversation or two, draw lines in the sand when you have to....and chances are you may actually make more than you would without that OPTION to quit.

If it ever gets to FTE status, see ya!!!

Sent from my SM-G930V using Tapatalk

 

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[StevieB]

Something I learned from Ramit Sethi was that most of us don't want to quit our jobs, we want the OPTION to quit our jobs and that sir is what you have now, congrats!

You will find that you may actually be more confident at work, speak your opinion a little more (constructively), have an extra difficult conversation or two, draw lines in the sand when you have to....and chances are you may actually make more than you would without that OPTION to quit.

If it ever gets to FTE status, see ya!!!

Sent from my SM-G930V using Tapatalk

You are 100% correct. There's also been a mindset difference at work (which I believe is the key to success, change your thoughts from your previous results to get different results, albeit it has to be for the better).

I look around when I come in, particularly at older people. People that are close to retirement. Mind you some of these people likely make a decent salary -- 150k -- 200k, including one that I respect a great deal. However they are still there. Funny enough the one I respect, comes up to me almost every day "hows the rentals / business going". He owned one himself a while back, so he knows. I think he has some regrets there (due to the wife, but anyway).

I think, why are these people still here? They've lived for that long and never figured out a way to get out of the corporate environment? Then I imagine myself, still there, in another 25 years.... still working on my laptop.... it just hard to think about. Like wow, I need to do something different.

I'm not even thinking about making money anymore, I'm just thinking about *what can I do to retire*? What value can I bring to people that they will allow me to retire early? Instead of me sitting here on my laptop doing this stuff for the next god knows how long.

Yes, technically I could quit tomorrow and live a slowelane salary on my rentals. But I have bigger plans than that, however I have to tell you it feels really good to be able to have the attitude at work that 'I don't need you'.

I've definitely changed, and actually from the companies perspective better because I voice my opinions much more and more aggressively find solutions to problems.

 

[greenGabbard]

Yeah I'm in a similar boat mindset wise
The problem isn't "me" and my finances
More just now not having enough to sculpt the environments of others I want to help

That just means you have more for the one you CAN actually help so just give it all to them, they need it my friend. I just started on this forum and any happy to get the knowledge of experienced first handers, just give to those willing to listen. They obviously know it's gold.

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[RogueInnovation]

I dunno @StevieB
You are right of course
But the idea of needing to retire early is also a bit of a ball and chain too
Like saying "I want to punch a guy so hard he doesn't come back" in a fight
It might make you swing big and miss
Gotta keep your process tight
Have a goal like "don't get dragged into bs, be excellent"
Then everything aligns like pulling on the end of a rope, rather than trying to push out the kinks
Pull rather than push

Of course, might not directly apply in your situation... I'm in no better position, so I mean, take it as you like
But my intuition is that your wins, if you take them too seriously can feed into losses. So buying too many properties might get you stung or something. Many things look promising early, only to later reveal issues.
BUT if your process is solid, then you are totally right

Good post

 

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[unaided]

You are 100% correct. There's also been a mindset difference at work (which I believe is the key to success, change your thoughts from your previous results to get different results, albeit it has to be for the better).

I look around when I come in, particularly at older people. People that are close to retirement. Mind you some of these people likely make a decent salary -- 150k -- 200k, including one that I respect a great deal. However they are still there. Funny enough the one I respect, comes up to me almost every day "hows the rentals / business going". He owned one himself a while back, so he knows. I think he has some regrets there (due to the wife, but anyway).

I think, why are these people still here? They've lived for that long and never figured out a way to get out of the corporate environment? Then I imagine myself, still there, in another 25 years.... still working on my laptop.... it just hard to think about. Like wow, I need to do something different.

I'm not even thinking about making money anymore, I'm just thinking about *what can I do to retire*? What value can I bring to people that they will allow me to retire early? Instead of me sitting here on my laptop doing this stuff for the next god knows how long.

Yes, technically I could quit tomorrow and live a slowelane salary on my rentals. But I have bigger plans than that, however I have to tell you it feels really good to be able to have the attitude at work that 'I don't need you'.

I've definitely changed, and actually from the companies perspective better because I voice my opinions much more and more aggressively find solutions to problems.

You can be income-rich - cashflow/wealth-poor.

I am just now realizing the potential pitfalls of "income-rich" with other income-rich friends. These newer friends and couples who tend to be 10 years older than me (and have more wiggle room than me) are starting to dangle trips in front of me like yacht-week in Croatia, March Madness in Vegas, Horsetrack in Del Mar, New Years blowout here, Bachelor party blowout there....etc and I am having to say no as my wife and I stick to "the plan".

I am starting to see how I can surpass them on fastlane benchmarks in much shorter time-frame by saying no in this "honeymoon phase" - so I really liked the comment below that reinforces patience and not getting overzealous.





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[StevieB]

I dunno @StevieB
You are right of course
But the idea of needing to retire early is also a bit of a ball and chain too
Like saying "I want to punch a guy so hard he doesn't come back" in a fight
It might make you swing big and miss
Gotta keep your process tight
Have a goal like "don't get dragged into bs, be excellent"
Then everything aligns like pulling on the end of a rope, rather than trying to push out the kinks
Pull rather than push

Of course, might not directly apply in your situation... I'm in no better position, so I mean, take it as you like
But my intuition is that your wins, if you take them too seriously can feed into losses. So buying too many properties might get you stung or something. Many things look promising early, only to later reveal issues.
BUT if your process is solid, then you are totally right

Good post

In business you only need 1 home run to be right.

A stupid man thinks he did no wrong when he loses and blames it on others.

A smart man learns from his losses and uses the experience to make better choices in the future.

A wise man learns from others losses.

The third option is why I'm here.

 

[RogueInnovation]

In business you only need 1 home run to be right.

A stupid man thinks he did no wrong when he loses and blames it on others.

A smart man learns from his losses and uses the experience to make better choices in the future.

A wise man learns from others losses.

The third option is why I'm here.

Babe Ruth
"You just can't beat the person who never gives up.
Never let the fear of striking out get in your way.
Every strike brings me closer to the next home run."

Fear can drive a guy to color the next possibility more golden than it is
But yeah, of course don't ever fear striking, learn, and hit it

 

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