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It is my day job. it really depends on the income you require. If you need £1000 PCM then 3 houses earning you £1100 PCM. If you want more........do your maths
Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester email: firstname.lastname@example.org Call: 0161 681 3724
It's a good question, but one that is very hard to answer. If you can live off £2K per month, your answer will be different to someone who requires £4K per month to meet all their financial commitments and live a life to the standard of their choice.A good starting point would be to add up your monthly out-goings/expenses and any extras that you wish to retain in your lifestyle (such as gym membership) and that will give you a number to work towards to achieve "financial freedom". You can then work out how many properties you will need - net cash flow per month - to cover that figure.This thread is also a useful resource - Guide: Giving up day job to become a landlord
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
It depends upon your debt level, lifestyle and the size of your household, surely? I have less children at home nowadays and could probably survive on the rental income I used to get from one house if on my own. However, after selling that I hope to buy 2 or 3 smaller houses to achieve the same income but split the risk and lessen the worry about voids. Being mortgage free will mean less worry too. No more watching the headlines about interest rates!
1 But I had a mortgage and was a nervous wreck so I'm changing that from 1 large one to 3 small ones with no mortgage!
There is no answer, If you live modestly and bought houses for cash and were mortgage free on your own place you might retire on 2 or 3.More realistically ask yourself what profit does this make, what %age of my lifestyle would that cover after tax and expenses firstly with interest rates as they are, then-how fixed are they, how long will low rates last, how would it stack up if interest rates did this ....., what if they did this.....how easily could I return to work if things changed and I had too?
If you work hard, save hard and most importantly think(!) it needn't take too long but its not guaranteed.
I always find it amusing when people ask 'how many properties....'
It all comes down to how much cashflow do you need to live on, and then you can work out how many properties in your target area will give you that figure
If I wanted £5k a month then I could probably live off 1 flat in prime central London, but would probably need 20 house if they were in Hull
I think my magic number will be 20, im past half way but finding it harder than ever to find properties, However im in north east.Have a friend in York who bought 18 years ago ish and hes never worked in 10 years with 6. Plus if my lifestyle changed I could probably do it on half.Depends I suppose how you live or how you want to live, I like going on holiday going out etc and not worrying how much is left in bank all the time
I would think if that you were intending to give up the day job then it makes sense to take on the day to day running of your properties.
So the question might also be how many properties can you cope with before your property portfolio starts to become a burden? And are these properties high value high rent luxury units or low end low rent properties? Will you be dealing with organised professional tenants or tenants with chaotic and precarious lives?
It all depends what you want from life. It might be that you can live modestly, enjoy travel and do not want a huge portfolio to manage, or you might prefer a champagne lifestyle and need lots of income and are happy to stay at home. So really there are too many factors to pin point an exact number of properties, but as others have already suggested it's all to do with lifestyle circumstances and expectations.
A minimum of 3-4 mid value mortgage free properties would be needed I suspect to fund a comfortable but not extravagant lifestyle.