Let me explain. The 5-7 year plan is to buy a sailboat and become liveaboard sailors. More specifically, the plan is to buy a Seawind 1190 Sport catamaran and name it something cheeky or profoundly meaningful. I've thought of this a lot. The boat, the routes, the dive sites... even the interior decorating (NOT nautical!) I've been thinking of it so much lately, I want to do it sooner rather than later. As there isn't a single relevant body of water near me at the moment in Midland, TX, so the sooner the better!
I should have been a nurse, but I grew up in Wyoming and summers found me covered in contempt and pipe grease while I worked on oil rigs. Upon college graduation, I couldn't stomach making $28,000 with my Biology degree when I had spent several summers working next to people who made $100,000+ who literally could not read. Thus began my love/hate relationship with the oilfield.
Fast forward six years, a few addresses and a 2-year international backpacking trip later, and I had begrudgingly joined the (black) gold rush in North Dakota. I realized I needed to break the cycle of earning money just to spend it all while traveling the globe and returning right back where I started. I did some research and purchased a turnkey rental property in Memphis, TN. The following year I bought another one, and another the year after that. Here I am now with four rental properties in Memphis. I'm not getting rich yet, but I see the potential for great passive income when the mortgages are paid down.
Now my wife and I are in Midland, TX and looking to purchase our first house. We have been renting from a sweet old lady for the past year and we realize if we keep renting from her, we will have paid her $100,000 over the course of our 5 year plan. That's not okay with us. We are very interested in a 2 year live-in flip, foreclosure or multifamily property.
Our current net worth is $280K. We save 40% of our income and give 10% away. We would be able to save more if rent wasn't so high, but that's the law of the land out here. I make about $90K before taxes. My wife and I each have traditional IRA's we max out and I max out my HSA at the beginning of each year. All Vanguard Index Funds. My job does not offer a 401(k). My wife stays home with our newborn daughter. Historically, accumulated savings went towards the purchase of another rental property. This year I decided to lease on a semi-tractor to an oilfield supply company. The returns are amazing on paper, but reality has been a mother. It's been 8 months and between mechanical issues and driver issues, I'm ready to sell the thing if I can.
My goal is a net worth of $750,000 or a passive income of $3,000-4,000/month or a combination of both. I'm hoping to learn from others on this forum who have achieved FIRE and join them soon!
Sincerely,
Terry
