{"id":7378,"date":"2021-01-02T02:00:45","date_gmt":"2021-01-02T10:00:45","guid":{"rendered":"http:\/\/olddawgsreinetwork.com\/?p=7378"},"modified":"2021-01-01T15:02:19","modified_gmt":"2021-01-01T23:02:19","slug":"480-how-to-retire-in-5-years","status":"publish","type":"post","link":"http:\/\/olddawgsreinetwork.com\/480-how-to-retire-in-5-years\/","title":{"rendered":"480: Best of Fun Facts Friday \u2013 How to Retire in 5 Years"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7379\" src=\"http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2020\/12\/480FFFpodcast.jpg\" alt=\"\" width=\"794\" height=\"415\" srcset=\"http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2020\/12\/480FFFpodcast.jpg 794w, http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2020\/12\/480FFFpodcast-300x157.jpg 300w, http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2020\/12\/480FFFpodcast-768x401.jpg 768w, http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2020\/12\/480FFFpodcast-600x314.jpg 600w\" sizes=\"auto, (max-width: 794px) 100vw, 794px\" \/><div class=\"smart-track-player-container stp-color-dd8c11-EEEEEE\" data-url=\"https:\/\/chtbl.com\/track\/F199CA\/traffic.libsyn.com\/secure\/olddawgsreinetwork\/FFF_239_ep_480_Best_Of_ep_376.mp3\" data-background_color=\"#EEEEEE\" data-image=\"http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2016\/06\/PodcastLogo.jpg\" data-download=\"true\" data-color=\"dd8c11\" data-title=\"480: Best of Fun Facts Friday \u2013 How to Retire in 5 Years\" data-artist=\"OLD DAWG'S REI NETWORK\" data-social=\"true\" data-social_linkedin=\"true\" data-social_pinterest=\"true\" data-social_email=\"true\" data-speedcontrol=\"true\" data-uid=\"WMZDLdW9\" data-download_id=\"7d6710f81625b2759cde5fa125a38be4\" ><\/div>SHOW NOTES FOR EPISODE 376:\u00a0BEST OF FUN FACTS FRIDAY \u2013\u00a0HOW TO RETIRE IN\u00a05 YEARS<\/h2>\n<p>Real estate investing\u00a0can be the key to an early\u00a0and fruitful retirement for those who are willing to put in the time and effort.\u00a0 It\u2019s especially effective if you have a full-time job, can aggressively save\u00a0and ramp up quickly to build up your real estate holdings.\u00a0 In this episode, Bill shares a simple formula anyone can use to build a retirement rental property portfolio in just five years.<\/p>\n<h2>How\u00a0to Retire in 5 Years<\/h2>\n<h2>Assumptions:<\/h2>\n<ul>\n<li>2 persons\u00a0who are currently still working and will be working for another 10 years<\/li>\n<li>Having W2 income makes it easier to get loans<\/li>\n<li>A man\/husband has\u00a0simplified\u00a0his\u00a0life\/downsized and\u00a0is able, with his wife, who works too,\u00a0to pull $2,000 a month from their monthly paychecks<\/li>\n<li>He\u00a0has a retirement fund of $500,000 in a self-directed IRA or 401K<\/li>\n<li>He\u00a0purchases\u00a0his first three properties with cash (from\u00a0his self-directed account) \u2013 $150,000 to purchase three $50K homes that each bring in $750 each (after expenses)\u00a0of net cash flow each month for a total of $2,250<\/li>\n<li>Where there are mortgages involved,\u00a0they use the 50% rule to estimate expenses<\/li>\n<li>He starts off\u00a0with the goal for Year One to\n<ul>\n<li>Begin saving $2,000 from\u00a0his and his wife\u2019s paycheck\u00a0each month<\/li>\n<li>Generate and save $2,250 in cash flow monthly from\u00a0his properties<\/li>\n<li>Total generated \u2013 $4,250 a month or $51,000 a year<\/li>\n<li>So, after one year of saving from\u00a0from his paycheck and saving\u00a0his property cash flow,\u00a0he has $51,000 that can be used for 2 $20,000 down payments to buy 2 $100K houses with mortgages.\u00a0 So, after debt service and expenses, they generate $425 per month net cash flow each or $850\u00a0together<\/li>\n<li>Year two\n<ul>\n<li>$2,000 \u2013 money from salary<\/li>\n<li>$2,250 \u2013 income from first three properties\u00a0he bought and owns outright<\/li>\n<li>$850 \u2013 two homes\u00a0he bought with mortgages<\/li>\n<li>$4,550 monthly or $54,600<\/li>\n<\/ul>\n<\/li>\n<li>This time, at the end of year two,\u00a0he buys 2 $100K houses, paying $20K down on each, they generate $850 per month in rent that results in $425 per month each, after mortgage and expenses (using the 50% rule) or $850 per month<\/li>\n<li>Year three\n<ul>\n<li>$2,000<\/li>\n<li>$2,250<\/li>\n<li>$850<\/li>\n<li>$1,275<\/li>\n<li>$6,375 monthly or $76,500<\/li>\n<li>At the end of year three,\u00a0he can buy\u00a04 $100K houses at $850 rent\/$425 cash flow times\u00a04 to generate $1,700\u00a0in monthly cash flow<\/li>\n<\/ul>\n<\/li>\n<li>Year four\n<ul>\n<li>$2,000<\/li>\n<li>$2,250<\/li>\n<li>$850<\/li>\n<li>$1,275<\/li>\n<li>$1,700<\/li>\n<li>$8,075\u00a0monthly or $96,900 per year<\/li>\n<li>At the end of year four,\u00a0he can buy\u00a05 $100K houses at $850 rent\/$425 cash flow times\u00a05 to generate $2,125 in monthly cash flow<\/li>\n<\/ul>\n<\/li>\n<li>Year five\n<ul>\n<li>$2,000<\/li>\n<li>$2,250<\/li>\n<li>$850<\/li>\n<li>$1,275<\/li>\n<li>$1,700<\/li>\n<li>$2,125<\/li>\n<li>$10,200 monthly or $122,400<\/li>\n<li>At the end of year five,\u00a0he can buy\u00a06 $100K houses at $850 rent\/$425 cash flow times\u00a05\u00a0to generate $2,125\u00a0in monthly cash flow and he can stop\u00a0his payroll contribution of $2,000 per month and can now live financially free, supported 100% by his rental property income<\/li>\n<\/ul>\n<\/li>\n<li>Year six\n<ul>\n<li>$0<\/li>\n<li>$2,250<\/li>\n<li>$850<\/li>\n<li>$1,275<\/li>\n<li>$1,700<\/li>\n<li>$2,125<\/li>\n<li>$2,550<\/li>\n<li>$10,750 monthly or $129,000 per year<\/li>\n<li>At this point\u00a0he could quit\u00a0his W2 job and live off rental income or keep moving forward, continuing to contribute $2,000 from both paychecks each month for another 5 years to double his monthly income.<\/li>\n<li>Of course, over time, rents will likely go up, the properties will increase in value,\u00a0his net worth will rise and other things may affect\u00a0his investments.\u00a0 Overall, however, he will have a secure source of income.<\/li>\n<\/ul>\n<\/li>\n<li>As you see from this example, in 5 years, you can reach half your 10 year goal<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-3402 size-full\" src=\"http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2018\/11\/Episode_254_5_Year_Chart.png\" sizes=\"auto, (max-width: 678px) 100vw, 678px\" srcset=\"http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2018\/11\/Episode_254_5_Year_Chart.png 678w, http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2018\/11\/Episode_254_5_Year_Chart-300x87.png 300w, http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2018\/11\/Episode_254_5_Year_Chart-600x174.png 600w\" alt=\"\" width=\"678\" height=\"197\" \/><\/p>\n<p>Isn\u2019t it amazing what you can achieve in just 5 years with focused goals and an aggressive saving effort.\u00a0 Whether it\u2019s $10K in 5 years or $20K in 10 years.\u00a0 It\u2019s possible.\u00a0 Now, this couple maxed out on their mortgages but in other years, they may consider getting a commercial loan for a 10 to 20-unit property or use another means to go around the mortgage goal limit.<\/p>\n<p>Here are some of our podcasts featuring guests who appeared on the Old Dawg\u2019s REI Network that achieved the same or similar results, some in <em>less than 5 years<\/em>.\u00a0 Check \u2019em out!<\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" title=\"\u201c253: Old Dawg Investor Creates Retirement ATM Machine in Just 2 1\/2 Years\u201d \u2014 Old Dawg's REI Network\" src=\"http:\/\/olddawgsreinetwork.com\/investor-creates-retirement-atm\/embed\/#?secret=5ENWQvJUSo\" width=\"600\" height=\"329\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" sandbox=\"allow-scripts\" data-secret=\"5ENWQvJUSo\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" title=\"\u201c217: Husband & Wife Turn $50K Home Equity Loan into $56 Million Real Estate Portfolio in Just 5 Years\u201d \u2014 Old Dawg's REI Network\" src=\"http:\/\/olddawgsreinetwork.com\/50k-into-56-million-rei-portfolio\/embed\/#?secret=ZG5lDc2Ro0\" width=\"600\" height=\"309\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" sandbox=\"allow-scripts\" data-secret=\"ZG5lDc2Ro0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" title=\"\u201c231: California Teacher Builds $7 Million Real Estate Portfolio in 7 Years\u201d \u2014 Old Dawg's REI Network\" src=\"http:\/\/olddawgsreinetwork.com\/7-million-re-portfolio-in-7-years\/embed\/#?secret=lh4h8ckJUB\" width=\"600\" height=\"309\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" sandbox=\"allow-scripts\" data-secret=\"lh4h8ckJUB\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" title=\"\u201c035: Investor Makes People\u2019s Lives Better\u201d \u2014 Old Dawg's REI Network\" src=\"http:\/\/olddawgsreinetwork.com\/035-investor-makes-peoples-lives-better\/embed\/#?secret=3aM4GJjUZK\" width=\"600\" height=\"281\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" sandbox=\"allow-scripts\" data-secret=\"3aM4GJjUZK\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" title=\"\u201c201: From Russia With Love for Real Estate Investing\u201d \u2014 Old Dawg's REI Network\" src=\"http:\/\/olddawgsreinetwork.com\/from-russia-with-love-for-rei\/embed\/#?secret=Jgvzj6rWpF\" width=\"600\" height=\"281\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" sandbox=\"allow-scripts\" data-secret=\"Jgvzj6rWpF\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>Well, that\u2019s it for today!<\/p>\n<p>IF YOU LIKED THIS PODCAST, we would love if you would go to\u00a0<a href=\"https:\/\/itunes.apple.com\/us\/podcast\/old-dawgs-rei-network-bill\/id1116214379?mt=2\">iTunes<\/a>,\u00a0<a href=\"http:\/\/www.stitcher.com\/podcast\/old-dawgs-rei-network\/000-welcome-to-the-old-dawgs-rei-network?refid=stpr\">Stitcher<\/a>\u00a0or\u00a0<a href=\"http:\/\/bit.ly\/1ZkxExp\">GooglePlay<\/a>\u00a0and\u00a0<strong>Subscribe, Rate & Review<\/strong>\u00a0our podcast. \u00a0This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful\u00a0retirement.<\/p>\n<p>Check out our other podcasts at\u00a0<a href=\"http:\/\/olddawgsreinetwork.com\/\">olddawgsreinetwork.com<\/a>.<\/p>\n<p>Get a FREE copy of\u00a0our\u00a0<strong>3-Minute Rental Property Analyzer<\/strong>\u00a0at\u00a0<a href=\"http:\/\/olddawgsreinetwork.com\/\">olddawgsreinetwork.com<\/a>.<\/p>\n<p>Episode Sponsor:\u00a0<strong>Meno Studio\u00a0\u2013\u00a0<\/strong><a href=\"mailto:menostudio777@gmail.com\"><strong>menostudio777@gmail.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SHOW NOTES FOR EPISODE 376:\u00a0BEST OF FUN FACTS FRIDAY \u2013\u00a0HOW TO RETIRE IN\u00a05 YEARS Real estate investing\u00a0can be the key to an early\u00a0and fruitful retirement for those who are willing to put in the time and effort.\u00a0 It\u2019s especially effective if you have a full-time job, can aggressively save\u00a0and ramp up quickly to build up your real estate holdings.\u00a0 In this episode, Bill shares a simple formula anyone can use to build…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7378","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts\/7378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/comments?post=7378"}],"version-history":[{"count":4,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts\/7378\/revisions"}],"predecessor-version":[{"id":7390,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts\/7378\/revisions\/7390"}],"wp:attachment":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/media?parent=7378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/categories?post=7378"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/tags?post=7378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}