Replacing JOB with PI income

Hi all,

What strategies have you used to replace part or all of your JOB income with PI, property development or business? I work 38hrs/wk, which I know isn't much compared to some but I would like more time to create an income from active PI and to try some new experiences for myself (without feeling exhausted)! The last 4 yrs have been very busy and I now think there has to be a better way!

Working 4 days/wk would be great but at the same time I have a goal to add 2 IPs/yr to my portfolio and obviously more income is better for finance approval!

Be great to hear of other people's stories of how you have created an income from your PI and managed to reduce your hrs at work.

Thanks for listening :D
Tarah
 
to be honest it's more time consuming and exhausting than a job - I am thinking of taking a break and going back to work for a while just to get out of the house and have a rest
 
This is achievable but a lot harder to do and maintain.....

From my perspective....concentrate on getting cashflow...any equity growth will be the icing on the cake and can be occaisionally used to supplement income.

I am yet to reach my target of 200k pa......though I am 25% of the way there.
 
What strategies have you used to replace all of your JOB income with PI

Purchased a CIP that was coming up for a market review. The resultant increase in nett cashflow was larger than what I earnt. Now L.O.R.

I enjoy the passive aspect of being a Landlord.....I've found it to be a superior contributor to lifestyle choices than other more active pursuits, like owning a business.
 
There are so many (non financial) benefits to owning a business beside the high cash flow (income) and tax benefits.

One of the biggest in the financial column tho is building a valuable asset that can be sold at many multiples of its purchase/start up cost at a later date. In fact many businesses are started/bought for just this purpose.

Purchased a CIP that was coming up for a market review. The resultant increase in nett cashflow was larger than what I earnt. Now L.O.R.

I enjoy the passive aspect of being a Landlord.....I've found it to be a superior contributor to lifestyle choices than other more active pursuits, like owning a business.
 
Sounds perfectly logical evan.

building a valuable asset

Never having owned a successful business, could you describe what magnitude / types of sacrifice it takes to achieve this task ?? I imagine it to be more than significant.
 
Most people who do it love it. Its not a sacrifice at all.

If it is, they shouldn't do it, and that is as it should be. Business isn't for everyone. Same applies to any worthwhile endeavor i'd say, resi or comm property investing included.


Sounds perfectly logical evan.



Never having owned a successful business, could you describe what magnitude / types of sacrifice it takes to achieve this task ?? I imagine it to be more than significant.
 
After being made redundant approx 4 months ago, I have increased my focus on option writing to provide a nice monthly cashflow, tho not near my previous income level.

This has provided us with income, more free time and allowed me to start a business I had ticking in the back of my head for about 8 years. So far so good, but only early days so far.

My thoughts have always been to develop an asset base that can provide me with the choice leave compulsory work and replace with working somewhere, doing something I enjoy and allow me to get more out of life.

Whilst it was forced and earlier than anticipated, it has given me the push to take the leap of faith.

OSS
 
to be honest it's more time consuming and exhausting than a job - I am thinking of taking a break and going back to work for a while just to get out of the house and have a rest

After what you've been through, don't blame you. Sometimes a JOB does sound like a much better proposition plus it kills the boredom of being just a property investor.
 
I would imagine that for this to work my PI income would have to be substantially more than what I earn.
Reason being is that I work a 38 hour week so if I were to give up my job I would have a lot of time on my hands and try to do things that will pass my time e.g lunching, shopping etc.

At the end of the day, I would need to work doing something otherwise I would go insane.
That something for me would be down the track doing admin for our construction company.
 
I would imagine that for this to work my PI income would have to be substantially more than what I earn.
Reason being is that I work a 38 hour week so if I were to give up my job I would have a lot of time on my hands and try to do things that will pass my time e.g lunching, shopping etc.

At the end of the day, I would need to work doing something otherwise I would go insane.
That something for me would be down the track doing admin for our construction company.

Property investing to me is purely the income vehicle to allow me to do what I like when I like with whom I like for as long as I like. Property investing is what I like to do but it is not my destination.
 
I'm amazed that anyone would prefer working for someone else than for themselves...
IMO that's an easy way out. ;)
(Mind you. This is coming from a newb who doesn't know anything else apart from working for other people).
 
Thanks to everyone who replied.

I just get stuck for ideas sometimes on how to actively continue adding properties but still be able to work part time. Over the years PI has become my hobby (maybe obsession :D) and I have lost interest in my profession despite changing jobs (I still enjoy it but not enough to work 5 days/wk). All I want to do is continually have a PI project on the go!

Anyone else have any stories on how they were able to supplement their income and still build their portfolio?

Thanks
Tarah :)
 
my ideas.

I'm hoping to be able to use leave and flex time to take ~4x weeks per year to do 1x full time 4 week IP reno per year. I still get loads of flex time to use as real holidays for a break anyway.

The trick will be how to get more time off work to do a second IP in the same 12 month period. I figure this could be a 3 month reno instead and the extra time/cost lag would be the 'cost of doing business' after all 2x IP's per year is better than one. :)

It's only going to be limited to 2x per year based on deposit capacity at this stage.

The next problem is how to get more time for a 3rd IP reno/deposit each year. Cashflow positive will help with deposits but time off will be harder to find.

Although using 7-10 for 7-10 principles I might only need to do this for 3-5 years to get those 7-10 IPs and then reduce work loads anyway.

Still thinking on it all for improvements to that path.
 
I'm amazed that anyone would prefer working for someone else than for themselves...
IMO that's an easy way out. ;)
(Mind you. This is coming from a newb who doesn't know anything else apart from working for other people).

Hi there

While there is no way I would prefer to have someone tell me what to do than being able to do what I want when I want, I certainly understand why some people would.

Personally, when all I did for money was work a 9-5 as an employee, then my weekends and after work were far more relaxing than they are now. I found it really quite easy to totally turn my brain off, and not think about work at all.

Now that I've got tenants, and houses, and all that other rigmarole it's certainly far more difficult for me to completely turn off this little brain of mine. To me, the rewards are certainly worth it - but I can certainly see why it wouldn't be!

Cheers,

Andrew
 
Thanks to everyone who replied.

I just get stuck for ideas sometimes on how to actively continue adding properties but still be able to work part time. Over the years PI has become my hobby (maybe obsession :D) and I have lost interest in my profession despite changing jobs (I still enjoy it but not enough to work 5 days/wk). All I want to do is continually have a PI project on the go!

Anyone else have any stories on how they were able to supplement their income and still build their portfolio?

Thanks
Tarah :)


Hi Tarah

Since we're in the "Innovative Techniques" section, I'm going to tell you that I use wraps and rent/buys to get some cash flow from some of my properties, while allowing me to build my portfolio at the same time.

I've got three properties that were buy and holds, and I've now done this to all of them, and they're making me around $600 per week between them. I'm 32 and was working full time until 6 months ago, and I've just cut down to 4 days per week.

However, if you're anything like me and have lost your fire for your profession, then don't kid yourself. Once you drop down to 4 days, within around 4 months you'll be planning on dropping down to three! :)

Good luck with it!

Andrew
 
Thanks Andrew,

Your strategy sounds interesting! 3 days/wk sounds great (plenty of time to play with properties then)! Are you planning to do this anytime soon?

Anyone else have any ideas of generating more cashflow from properties?

Thanks
Tarah :D
 
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