I am debating making the switch to full time rehab/flipping. I currently own 13 apartments and 6 houses in a moderately small Midwest B class town.
I work a w2 job with a pension(already vested) in a stressful job environment that pays about 80-85k/yr. The wife also works as an RN making slightly more. Not bad money..
Real estate investing runs deep in the family blood and it's all about everyone does. I've bought all my places needing serious work; on average 40-100k+ worth of work in materials alone. There's not too much to scare me away that can't be done or I don't have a connection for. I guesstimate I've roughly built about 1 million in equity so far in the past two and a half years which is when I started transitioning to real estate.
I typically average 3 months per reno and that's with significant structural/rehab included working by myself. My plan is for 1-3 years focus on rehab and flip versus holding and see if it seems enough to quit my w2 on. The sooner I can make a safe decision the better though. It's a lot…
it's a bit taxing managing all the units, working full time in my environment, balancing the family, and flipping the current house. On paper, the numbers look good and possible, but leaving my secured well paid w2 with a pension is quite a leap ..the rentals do cash flow but not enough I'd be comfortable relying on by any means. PITI are a killer, but I built a good amount of sweat equity as I said above etc.
I do have an in with a local realtor who offers me lowered commission and brings some deals to me sometimes. He also wants to partner on some projects.
any thoughts or advice from people who have been in similar shoes?
Debating leaving the W2 for real estate..
byu/AJebus inrealestateinvesting
Posted by AJebus
2 Comments
Been wrestling with this same decision for a while now. That pension is golden handcuffs territory – especially if you’re already vested and building toward something solid down the road.
Maybe test the waters with a hybrid approach? Scale back to lighter flips on weekends/time off and see if you can consistently hit those 3-month turnarounds without burning out completely. The realtor partnership could be clutch for deal flow without you having to hustle as hard for leads.
If you’re already vested, then you’re already vested…Are you saying you’d have to give up the future pension if you quit?