How do you FIRE in 10 years with 350k annual income? What’s the passive income after 10 years to FIRE?
If I give you and your spouse a job with 350k total per year within a 10 year contract starting today 5/3/2018, you are guaranteed to be jobless in 2028. What’s your plan to FIRE in 2028? It’s a full time job at a typical tech company as engineers.
Assuming you have a working spouse and 2 young kids, same total income of 350k for 10 years.
The key is how much less than your income is spent each year. That’ll determine how much is invested which will compound each year. If your goal is FIRE, then you want rentals that cash flow. You need to go further out like @wuqijun has done. Negative cash flow is a huge liability and goes completely against FIRE. You can’t live on appreciation when you quit your job unless you sell the homes. Then you’d be spending down principal which isn’t a good idea early on. You want to keep as much money invested as possible.
Exactly.
3. Too easy.
2. Rent & save enough to buy this type of Austin house, 3500 sqft 4 bedrooms/ 3.5 baths, for $300-$350k every two years. At the end of 10 years, you would have 5 such houses, total annual rent over $150k.
That’s assuming you pay cash and use no leverage. If you use very conservative leverage like 50% down, you can buy 10 instead of 5.
Mortgage would be 1.5M. Annual mortgage payment would be 90K. But rent would be 300k. So net would be 210K. You can definitely FIRE on 210K. If you can’t RE on 210K you are just not destined to be FIRE’d at all.
2 is better than 1. It’s better to have one person working and making 350k than 2 working. The stay home spouse can take care of kids and lower spending, manage rental property and flip houses.
Better to have one making 350k instead of 2 making 175k each. Earning per hour is doubled.
