Starting My Journey, Wish Me Luck!

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Posts: 5
Joined: Sat Sep 21, 2019 4:56 pm

Starting My Journey, Wish Me Luck!

Post by rich1234 »

Hi All,

Single 48 year old Gen Xer here. Been saving for a few years, living on much less than my net 5400 a month pay. Since I quit I have had some big bills come in, with school tax and expensive cancer surgery for pet(1k), to counter this, I went 1 month without grocery, ate alot of canned, oster waffles, ect! This month is usually the biggest bill month anyways due to school tax of $2400+.

Left a decently paying IT job for this area Aug 2019 that took up too many hours of my life, usually 50-60, being on-call, ect, plus I hate IT anymore, though I could go back if I have to and spend the next year working on certs, ect? I called my leaving going into Super, Super, Super Emergency Mode, an inside joke with a former coworker lol.

Just finished ERE and came away feeling pretty good about where I am, I don't think I can fully retire at this point but pivot towards part time.

I have traded in the stock market in the past and I am really risk averse especially, I much prefer real estate and have made money flipping, thinking of house hack duplex or more and building rental income streams.

My Extreme Plan is sell home, sell vehicle, rent, which I estimate to be around 1k a month for rent/electric/phone/water/trash in the town I am interested in, do possible uber, sell plasma, pick up side gigs. I've also considered van life, read Bob Wells, cheaprv living which would eliminate housing costs and possibly trade Jeep for a class B Roadtrek but pets would not fit this model, they are almost 13, one is probably not going to be here much longer.

Assets are

250K MMA earning 2 percent at local bank with check writing/credit card for 6 months rate locked, damn the Fed!!!

Around 25k in lower yield MMA(1.5 percent)/Chk Account, considered first year money to live
Home 160-190k Market Value, Free and Clear

Debt, 28K Vehicle, 3.5 Interest Rate

Total Assets Minus Debt 407k-437k

Yearly Expenses mostly fixed, electric is high due to electric heat during cold months. Haven't owned a cellphone in nearly a decade, no tv for as long! Going without Medical Insurance for a year, then applying for VA Medical when income drops, rarely go to traditional Dr's, in pretty good shape.

MY INTERNET 1200 (going to try and cut this in half next month)
MY OOMA(phone) 80
Total 8500
MY JEEP PAYMENT 5670(considering selling vehicle and buying junker)
MY FUEL 1000(low est)
Total 7470

MY FOOD 4000(est)
PETS 1200(blown est)
Total 5200
MY TOTAL 21170

I am thinking at this point in my situation net 26000 per year and looking to get this down through house hack, selling primary home next year.

Thanks for reading and feel free to comment!

Posts: 1079
Joined: Sat May 23, 2015 3:46 pm

Re: Starting My Journey, Wish Me Luck!

Post by thrifty++ »

God I am so jealous of real estate prices in USA. Makes ERE so much easier.
Where do you live that you can buy a home that cheap?

Posts: 5
Joined: Sat Sep 21, 2019 4:56 pm

Re: Starting My Journey, Wish Me Luck!

Post by rich1234 »

I'm in the southwest portion of Pennsylvania. You can find rural areas that are dirt cheap and safe here, 30k for a house with two tenants and a trailer tenant and it nets 650 a month after taxes and insurance is an example of real estate property I am looking at.

My home is assessed at 205k, paid 76k as a foreclosure, fixed it up pretty nice, your typical split entry brick/sided, 3/4 acre, gas lease with no royalities yet, I'm planning on downsizing and flipping out of this one to something in 50k range and bank money for rental streams.

Many homes can be had for under 30, some a basically free if you pay back taxes and fix them up, No way I would want to be on the west coast, I can easily follow ERE here, rural areas have lest restrictions on burning trash, having livestock, read chickens.

Posts: 5
Joined: Sat Sep 21, 2019 4:56 pm

Re: Starting My Journey, Wish Me Luck!

Post by rich1234 »

6 Month update since I quit my job on Aug 30 2019.

Did some online surveys to make extra money(about 1k), MMA 2 percent monthly return on 250k, expiring mid march, looking at real estate. Got a nice income tax return, $3500.

I am 6 months out and $4500 down from my high amount after last paycheck. Thats zero market exposure, living on the cheap, no health insurance, I passed this cycle.

Pretty happy with my situation, wanted to prove I could live cheap and I did, ate well, didn't buy anything unless I could eat it or wear it. Looking to super downsize my home for an ultra cheap home and sell my home, which should net me 150-175k, Jeep is down to 25,500 owed and my only ongoing debt.

Still seeing cheap homes for rentals in the under 50k range that should net 500+ a month each, would like to find a few duplexes to get the cash flows.

Posts: 27
Joined: Thu Mar 05, 2020 5:19 pm

Re: Starting My Journey, Wish Me Luck!

Post by Hail_Diogenes »

No cell phone or TV for over a decade? You sir are my hero.

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