174: Finance Friday: Reaching Semper FI (Financial Independence) Before Retirement with Fabio

BiggerPockets Money Podcast

Real estate investors are known to have their hands in 20 different pots, this is doubly true for Marine and real estate investor Fabio. Fabio is a Captain in the Marine Corps and has been in service for the past 21 years. He has at least five years left before he wants to retire, but is poised to hit his “freedom number” (or what others call their financial independence number) soon.

Fabio has rental properties throughout the country: a duplex in San Diego, a house in Arizona, a BRRRR currently in the rehab stage in St. Louis, and his residence in Illinois. The problem? Some of these properties aren’t cash flowing as much as Fabio would like. He also has a high interest hard money loan on the BRRRR property he is rehabbing, plus a loan taken out against his retirement account.

This presents a handful of different options: should he sell some of the houses that aren’t cash flowing in order to pay back some of the high interest loans or wait to refinance? Which debt should be taken care of first? How can he leverage his current assets to help him build a bigger real estate portfolio.

If you’re a long-term real estate investor, you’ve probably been in a dilemma like this before. Stick around for all the lucrative options Fabio can use!

In This Episode We Cover

• Keeping monthly expenses low (especially if you’re about to retire)
• Taking advantage of the equity you have in different properties
• Coming up with a “Freedom Number” then shooting for that goal
• What to do with houses that aren’t cash-flowing
• Taking out loans from a 401(k) or TSP account
• Which loans to pay off first (depending on time and interest rate)
• And So Much More!

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