I'm planning on June 6th, 2017 for my FI date.
Hopefully I'll beat it by a few months.
Farm income from my recently deceased mom is expected to cover 2/6ths of our target income and is just now starting to come in for us. (That was never part of our FI plans for 4-5 years from now.)
My daughter's disability social security covers almost another 1/6th and that is already in place. Add in the rental income from Rental #1 and we're at 1/2 our target FI income already.
My lovely wife, who is 10 years older than I am, will be going on Social Security in March of 2017. That will cover 2/6th of our target income and get us to 5/6ths of our target income. She will also go on Medicare which will cut our health insurance costs by a goodly bit.
If we get the other two currently owned rentals rented out that will cover the other 1/6th.
In theory we own enough assets to be FI now. But they aren't deployed properly or they aren't producing income yet.
For example, we now own 5 houses, but only one of them is rented. The other 4 (a rental we just this week got ready for market, another rental that we just bought, my mom's house and our own personal house don't make money, they just cost money. And we're about to buy a new personal house for ourselves, which will make house costs even higher!)
So although we've got passive income at 1/2 our target income at the moment, we've also got very high expenses at the moment. Much higher than usual.
In a week or two we'll get some of our assets redeployed into cash, which will use to pay off the credit card debt that ballooned from nothing to $18,000 over the last 3 months as we traveled out of town to help out my mom, paid for her funeral, paid to move stuff back to our home, and paid for the last bit of repairs to rental #2. Plus we'll pay all the property tax on six houses and - just to get the bills off our back - the property insurance for the next year. That same cash will cover the costs of upgrading our new personal home and repairing our current home.
That will get us back to a more normal keel.
We'll still have a new mortgage on the new house to pay and a HELOC on our current home (used to pay for rental #3) to pay. Those are both expenses our target income did not intend to cover.
Selling my mom's house will allow us to pay off the mortgage on the new house.
Selling our current house will enable us to set aside cash reserves to get another 2 to 3 rentals and pay off the HELOC.
And rehabbing rental #3 will get more income coming in.
At that point, our house cost drops from 6 houses (1 income producing) to 4 houses (3 income producing) and zero debt.
We'll have cash reserves from the rental properties, built up from rental income over the next year, to cover next year's insurance and property tax costs.
At that point, we can consider going FI somewhat earlier.
Ok, I realized that's a bit rambling... :)
Here's a better summary of status:
$60K : Target Passive Income (with no mortgage/heloc expenses)
Current Passive Income
$20K : Farm
$ 8K : Daughter disability
$ 5K : Profit one rental
$33K : Current Passive Income. 55% target income.
less -$34K to mortgage and HELOC payments.
Next Year Passive Income, above plus:
$ 9K : Rentals #2 and #3
$41K : EOY 2016 Passive Income. 68% target income. Mortgage and HELOC paid off.
Passive Income 2017 Onwards, above plus:
$14K : 3 more rentals.
$20K : Wife Social Security
$75K : EOY 2017 Passive Income: 125% target income.
Passive Income 2018 Onwards, above plus:
$ 22K : Stock at 3% SWR.
$ 5K : Consulting/Art
$102K: EOY 2018+ Passive Income: 170% target income.
So, if we get the target 6 rentals bought and rented early, I can go FI before my wife goes on SS.
It will be close enough.
Other buffers include:
$ 5K : Additional consulting or art money
$ 10K : 2 more rentals if cash flow from rentals 1-6 is good enough early enough.
$ 20K : Social Security for me in 8 years, or more if we wait longer.
$ 90K : Back to work I go.
Here's the one that's got me really amazed. The difference between my target income and my projected actual income is enough, even after taxes, to purchase and rehab an additional rental each year. Think about that! I can quit working and earn enough to buy another house each year I'm not working! That can add another $5K to my income each year I can pull that off.
In 4 to 6 years, I could actually increase my income to the point that we could buy two houses a year. That is so mind-boggling.
Anyway, I'm glad to be in the 2017 cohort. We'll be the best, of course! :)