CalculateRealEstateROI

Wealth Building

When can I safely quit my W-2 for real estate?

When passive cash flow exceeds expenses by 1.5x with 12 months of reserves.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

When passive cash flow exceeds expenses by 1.5x with 12 months of reserves.

Expanded explanation

1.5x cushion covers vacancy/capex surprises. 12 months reserves covers transition shock. Many do part-time consulting for 12–24 months before fully quitting.

Examples

  • $8k expenses × 1.5 = $12k required cash flow + $96k reserves.

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