I Started Investing in My 40s, Now I Can Retire Early (16 Rentals!)

Quick Overview

Firefighter and real estate investor Brian Waters achieved financial freedom by age 33 by aggressively pursuing out-of-state turnkey rental properties in the Midwest, starting his investing journey in 2021 and rapidly building a portfolio of 16 properties across Memphis, Detroit, and California, leveraging private money and a strong network to bypass the typical slow acquisition pace.

Key Points: Brian Waters started investing in real estate in 2021, while working as a firefighter and commercial airline pilot. He owns 16 investment properties, with 15 being out-of-state turnkey rentals in markets like Memphis, TN, and Detroit, MI, while one property is in his expensive California hometown. Waters utilized private money to fund the acquisition and renovation costs, allowing him to pull out capital quickly and recycle it into new deals. He deliberately avoided properties requiring heavy work (like flips or 'burrs' that needed extensive personal oversight) to maintain his demanding full-time schedule. His first out-of-state property purchase in the Detroit area was financed with a private lender at 10% interest with no points, allowing him to pull out $75,000 after renovations. He relies on turnkey providers who handle all aspects of finding, renovating, and placing tenants, which he prefers over dealing with contractors or self-managing maintenance from afar. Waters plans to retire at age 53, ten years ahead of schedule, due to his success in building this passive income stream.

Context: This interview features BiggerPockets Head of Real Estate Investing, Dave Meyer, speaking with Brian Waters, a firefighter and commercial airline pilot who achieved significant financial success through real estate investing despite having a demanding full-time career. The discussion focuses on how Waters built his portfolio primarily using out-of-state turnkey rentals to accelerate his path toward early financial freedom.

Detailed Analysis

Brian Waters, who started investing in 2021, leveraged the BRRRR strategy primarily through out-of-state turnkey rentals to acquire 16 properties by the time of the interview, aiming to retire at age 53, ten years early. He intentionally avoided hands-on deals like flips or heavy rehabs because his schedule as a firefighter and pilot didn't allow for time-consuming management. His strategy involved identifying strong Midwest markets like Memphis and Detroit, finding turnkey providers who offered fully renovated properties with tenants already placed, and using private money to fund the deals. For his first deal, he secured a private loan at 10% interest (no points) on a $110,000 property, allowing him to pull out $75,000 after renovations, which he then recycled. He credits this hands-off approach with allowing him to scale quickly, relying on trusted partners for inspections, renovations (like new roofs, flooring, water heaters), and tenant placement, thereby minimizing personal time commitment and risk compared to traditional methods.