Hello. I don't know if I posted an obligatory intro but this post will show where I'm at financially, where I want to be, and ask how to get there. I need ideas because I'm getting older and still working at a damn desk.
Current Financial Situation
*Job ($70k/yr) - I work Mon-Friday in Detroit 90 minutes from home. Weekends, national holidays and 20 other personal vacation days off. My 2 week paychecks are $1700 and I can save a good $500/mo (to put towards debt)
*Housing Costs ($1050 total) - I have 2 apartments. One is "home" in a smaller town with 2 bedrooms, garage, etc. and costs me $650 (including heat, electric, water, Internet). All my stuff is there and I'm rarely there on work days. I rent a room near work for $400. The apartments are 90 minutes apart. If I got ONE apartment with 2 bedrooms and a garage near work in the big I'd be paying $1200-1500 a month and then not have a place at home near the properties. If I got a place in the middle it'd be a 50 minute drive either way.
*Vehicles (2) - I have a 33 mpg car I paid $1000 for and a $800 work truck that I use 1-2x per month (I pay like $100 total insurance on these 2 vehicles).
*Real Estate (8) - I own 8 properties near "home" which is 90 minutes from "work." I go back on workdays to work on a vacant property if need be. I got a property manager to try to make things smoother. And I bought a "How to Find Good Tenants" book because, if I had good tenants would literally wouldn't have to work. But, as it is, I only made $5000 after expenses in 2018. Example: Averaging everything out, I pay $300/mo to own each house and rent each for 600. 8*300 would be $2400/mo in cashflow. The reality is that one house will be vacant and in the process of kicking out another tenant plus spending $2000 to fix up a property. Average it out I only make like $500/mo.
*Family (0) - I don't want a wife or kids. Mom is near home where the rental properties are, but that's not limiting me.
*Credit Card Debt ($24k) - I just keep transferring back and forth from 0% credit cards. I incurred this debt at a time when I couldn't find a job and also as down payments on the properties. I've paid it down from $30k since last year.
Goal
I simply want to not work a job with a defined time schedule. If I had $4000 after-expenses money coming in from the rental properties I'd be good. Or if I worked 20 hours a week remotely on some book or website I'd also be fine. I don't need to be rich, I just need enough. I'd travel, visit forests, seek out scattered family members, invest in things I'm interested in, find a GF, etc. My time would be mine and that's what I want. My dad just retired and he's getting like $2500/mo pension/social security. Living the dream!
How to Get There?
*Housing - I think daily about paying for 2 places to live. But I always conclude that it's the best way. I could rent out a room at my main apartment, but I don't want anyone in my space and there's really not that much room. I'm already sharing with people at the place near work. I've thought of buying a duplex either at home or near work or both, but it's really not feasible (other than building equity but that's a 20 year waiting game). Numbers: Duplex is like $120k or more, so you're paying $1000 a month and only getting $650 for rent. So I'm still paying the same to live as I'm paying now, responsible for yet another building, and have to manage another tenant.
*House Flipping - I have several realtors working with me to find a place to buy near work, live in on weekdays, fix up, and flip. The problem is that they are overpriced because there are companies a lot bigger than me that do this all the time. I could buy a house for $100k that, after repairs, will be worth $160k. Okay, but look at the loan costs, look at how I pay $1200/mo just to live in it, $20k material costs, certain costs to electrician, etc. for things I can'd do myself, etc. Then $160k? Says who? The market around here is nuts and $160k houses were worth $90k just 8 years ago. I don't want to risk it. And for a fast flip you're looking at 35% short-term capital gains. One year's worth of work I get $10k? No thanks.
*Sell Houses - (1) Worth $40k, owe $20k; (2) worth 55k, owe 20k, (3) worth 25k, owe $0, (4) worth 45k, owe 40k, (5), worth $30k, owe $10k, (6) worth 30k, owe $10k, (7) worth 40k, owe 10k, (8) worth 25k, owe $0. I could sell one to pay off debt? Or to pay a programmer to build an app? Or as a down-payment on 2 new houses? I don't know.
*Smart Phone App - For a few years I've had an amazing app idea which, when I start telling people about it, will really make you say, "You gotta love the Internet!" This app, if when made (someone will make it eventually even if not me), will change a lot. So, I bought and read the books: The App Factory, App Secrets, and How to Build a Billion Dollar App. This is a lot of work! I need a team of 10-20 people, investors, advertising, etc. If I made it I'd simply want to sell it for $2 million and never work again, but God, making it is one thing but to make it so it's worth enough to sell is a heck of a lot more work than I thought. How can I do this working a full time job and managing 8 properties?
So, that's my financial situation. Is there's something I'm not seeing? I don't have many like-minded people around me in Michigan, but I will seek some out. What do I do to meet my goal? Any advice or criticism appreciated. I'll try not to be defensive!
Current Financial Situation
*Job ($70k/yr) - I work Mon-Friday in Detroit 90 minutes from home. Weekends, national holidays and 20 other personal vacation days off. My 2 week paychecks are $1700 and I can save a good $500/mo (to put towards debt)
*Housing Costs ($1050 total) - I have 2 apartments. One is "home" in a smaller town with 2 bedrooms, garage, etc. and costs me $650 (including heat, electric, water, Internet). All my stuff is there and I'm rarely there on work days. I rent a room near work for $400. The apartments are 90 minutes apart. If I got ONE apartment with 2 bedrooms and a garage near work in the big I'd be paying $1200-1500 a month and then not have a place at home near the properties. If I got a place in the middle it'd be a 50 minute drive either way.
*Vehicles (2) - I have a 33 mpg car I paid $1000 for and a $800 work truck that I use 1-2x per month (I pay like $100 total insurance on these 2 vehicles).
*Real Estate (8) - I own 8 properties near "home" which is 90 minutes from "work." I go back on workdays to work on a vacant property if need be. I got a property manager to try to make things smoother. And I bought a "How to Find Good Tenants" book because, if I had good tenants would literally wouldn't have to work. But, as it is, I only made $5000 after expenses in 2018. Example: Averaging everything out, I pay $300/mo to own each house and rent each for 600. 8*300 would be $2400/mo in cashflow. The reality is that one house will be vacant and in the process of kicking out another tenant plus spending $2000 to fix up a property. Average it out I only make like $500/mo.
*Family (0) - I don't want a wife or kids. Mom is near home where the rental properties are, but that's not limiting me.
*Credit Card Debt ($24k) - I just keep transferring back and forth from 0% credit cards. I incurred this debt at a time when I couldn't find a job and also as down payments on the properties. I've paid it down from $30k since last year.
Goal
I simply want to not work a job with a defined time schedule. If I had $4000 after-expenses money coming in from the rental properties I'd be good. Or if I worked 20 hours a week remotely on some book or website I'd also be fine. I don't need to be rich, I just need enough. I'd travel, visit forests, seek out scattered family members, invest in things I'm interested in, find a GF, etc. My time would be mine and that's what I want. My dad just retired and he's getting like $2500/mo pension/social security. Living the dream!
How to Get There?
*Housing - I think daily about paying for 2 places to live. But I always conclude that it's the best way. I could rent out a room at my main apartment, but I don't want anyone in my space and there's really not that much room. I'm already sharing with people at the place near work. I've thought of buying a duplex either at home or near work or both, but it's really not feasible (other than building equity but that's a 20 year waiting game). Numbers: Duplex is like $120k or more, so you're paying $1000 a month and only getting $650 for rent. So I'm still paying the same to live as I'm paying now, responsible for yet another building, and have to manage another tenant.
*House Flipping - I have several realtors working with me to find a place to buy near work, live in on weekdays, fix up, and flip. The problem is that they are overpriced because there are companies a lot bigger than me that do this all the time. I could buy a house for $100k that, after repairs, will be worth $160k. Okay, but look at the loan costs, look at how I pay $1200/mo just to live in it, $20k material costs, certain costs to electrician, etc. for things I can'd do myself, etc. Then $160k? Says who? The market around here is nuts and $160k houses were worth $90k just 8 years ago. I don't want to risk it. And for a fast flip you're looking at 35% short-term capital gains. One year's worth of work I get $10k? No thanks.
*Sell Houses - (1) Worth $40k, owe $20k; (2) worth 55k, owe 20k, (3) worth 25k, owe $0, (4) worth 45k, owe 40k, (5), worth $30k, owe $10k, (6) worth 30k, owe $10k, (7) worth 40k, owe 10k, (8) worth 25k, owe $0. I could sell one to pay off debt? Or to pay a programmer to build an app? Or as a down-payment on 2 new houses? I don't know.
*Smart Phone App - For a few years I've had an amazing app idea which, when I start telling people about it, will really make you say, "You gotta love the Internet!" This app,
So, that's my financial situation. Is there's something I'm not seeing? I don't have many like-minded people around me in Michigan, but I will seek some out. What do I do to meet my goal? Any advice or criticism appreciated. I'll try not to be defensive!
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