How to Replace Your W2 Income with Rental Properties in Just 3 Years

Episode #996

Join BiggerPockets for FREE 👇

Grab Your Copy of “Rich Dad Poor Dad”:

Find Investor-Friendly Lenders:

See Henry at BPCON2024 in Cancun!

4 Serious Points to Consider Before Quitting Your Miserable Job to Invest:

Connect with Grant:

Connect with Henry:

Can rental properties replace your W2 income, lead you to financial freedom, and help you build multimillion-dollar wealth in the process? Yes, and Grant Francke is proof you can do it in a few years or less. After the burnout of forty-eight-hour shifts as a railroad conductor (yes, you read that right) left him searching for an escape, Grant stumbled upon real estate investing and the "BiggerPockets Real Estate" podcast. Within three years, he built up enough cash flow to quit his job and never looked back.

In today’s show, Grant walks through the “boring,” stable, and safe rental property investments that have led him to complete financial freedom. He’ll touch on the first duplex he bought, why Grant prefers multifamily real estate to single-family homes, reverse-engineering your financial freedom to calculate HOW many rentals you need, and the sacrifices he had to make to get there.

If you’re tired of missing out on time with your family, children, or friends and want to start living life on YOUR schedule while making MORE money than you would at your job, this is the place to start!

00:00 Intro

02:02 48 Hour Shifts!?

03:17 Replacing His Salary

10:21 Quitting and Buying First Rentals

17:33 Current Portfolio and Financing

21:19 Real Deal Review

24:37 Scaling with “Controlled Growth”

30:39 Replace YOUR W2

[somedudeonyoutoob]

42 doors for 4k in cash flow? that seems like too much work for so little money

[gisellmorales]

This episode has opened up my mind to “control growth”. Sometimes I feel I need to kee buying. Right now I have 13 properties and cash flow above $8, 000 x month net. I will get control growth mode to buy without rushing and only the best property possible. Thanks!!

[milenailieva]

Hello! Can you also discuss health care benefits as we all know it is so expensive. If you are quitting your job, I am assuming you are paying thousands of dollars for healthcare insurance.

[bmfairweather]

If i’m not 3X’ng my monthly salary I’m not quitting my day job.

[danushalameris]

Yes on the management follow-up episode. Love this.

[aaronmurphy]

Im cautiously optimistic that this Is actually gonna be about cash flow from longterm rentals .

If so I’ll be super happy it seemed like bigger pockets didn’t do this anymore

Thank you Henry !

[FinancialfitDiva]

I'm not a fan of his math. Leaving a job where he makes $60-80K per year to make a minimum of $48K imo is not the best. That $60-80K could easily equate to $78-104K when you factor in benefits like healthcare, vacation and retirement. I cash flow more than that and I would never dream of leaving my job for what I'm making

[gisellmorales]

Congratulation on your journey! Great interview! Both of you are great and thank you for sharing! I do not know many real estate investors and thru Bigger Pockets I am able to hear other great strategies…! Thanks!

[bova]

2024 goodluck starting out to get any multi. I got beat out 13 times now with me offering over 30k-60k

[tressacramer]

Enjoyed this episode. Bravo to you for figuring it all out and working hard with your wife to achieve your goals.

[jeffmack]

$8 Million in property value and just $48k/month in cash flow? Did I hear that correctly? Something’s off hear!

[oco]

I personally won’t borrow from my 401K. And I won’t allow my husband to do it either. I believe in keeping these classes separate

[jordanalexander]

Did he say how he was coming up with the down payments to scale to 104 units? Was he just saving his cash flow or was he doing a cash out refinance on other properties?

[thesnyderteam-lasvegas]

42 doors to make 4, 000 cash flow is crazy.

[perseverance_]

It’s frustrating when host Henry Washington provides inconsistent stories about his first investment. In this episode, he mentions using his 401k money, while in another, he claims his first investment property was 100% bank financed. BiggerPockets, please establish clear ethics and standards. The audience trusts this channel, but these inconsistencies from Henry create doubts.

[barrybukowski]

Yeah, you need at least 50 doors to make any kind of money. You will get wrecked by taxes and repairs.

[MissBellaMe]

Why was he using conventional loans instead of dscr loans?

[omarsanchez]

Man can’t to hear how he manages all those doors.

[danahoward]

Im a newbie. So, whats the difference betwen a commercial bank and every other bank?

[jacobcamoza]

The exposure these people have to a rough market is wild. Sooo many people are too leveraged and when it goes sideways, watch out for all the bankruptcies.