Have you ever thought about what kinds of changes you can do to your life to reach financial independence faster? Life is a series of choices and every choice you make can get you one step closer to early retirement. It is very important to plan out and strategize your life making decisions because in the end, they can propel you to reaching your financial goals. But you must be careful as well as the wrong decisions can really set you back.
A long time ago I figured out all the minor financial steps I could take to increase my cash flow by cutting out all my unnecessary bills. Shortly after that I was on a game plan to invest in real estate to generate passive income. I knew that passive income was the key to my future and my dreams for retiring early were not just dreams anymore. I bought four rental properties in less than one year to help me reach my financial freedom goal and now I am about to make a huge and unprecedented life altering change to propel my early retirement goal to new levels. I will be able to reach financial independence much faster by making this drastic change in my life.
My Life Altering Decision:
I am officially moving from Austin, TX to Indianapolis, IN. Whoa!! Yes I am really leaving Austin for Indy! You might be thinking I am crazy right now. Heck there are nights I can’t sleep because of the anticipation of such a life altering move. It really is a big deal for my wife and I but we think it is the smartest decision for us. You will see below how moving to the Midwest can help speed up early retirement?
Why am I leaving Austin?
- The real estate market is too expensive. I am no longer able to find cash flowing properties for investments and any house we are interested in raising a family in is at least $400k. I’m sorry but I refuse to pay that kind of money for a house. At least not until I am filthy rich one day. 😉
- Traffic is a nightmare! Austin is a great city, don’t get me wrong, I have lived here for the past 13 years and have had a great time but man did they really screw up the road infrastructure here when they built it. The roads were not built to accommodate even half the amount of population that exists today here.
- In a nutshell it really is just that the city has grown too much and I no longer find it as desirable as I did when I first moved here. There used to be a slogan in Austin called “keep Austin weird”, well those days are over and it’s pretty much just a normal big city now. Not that this is bad but I would prefer a smaller city vibe with a much more affordable cost of living.
- But the main reason I am leaving Austin is because I want financial freedom dag gummit!! Yes I just said dag gummit which for those of you who don’t know, its kind of like saying g0d d@mm!tt but in a much cleaner way! 😉 It’s a Texas thing!
By leaving an expensive, hot market with a higher cost of living and moving to a lower cost of living market with cheaper real estate in the Midwest, it will allow me to really take control of my finances and accelerate building my mini real estate empire.
How is moving to the midwest going to help me accelerate reaching financial freedom?
- I will have more cash. I was fortunate enough to purchase 3 different properties in Austin while I lived here and I am taking advantage of the seller’s market we are in right now. My primary house has appreciated over $125k in just a few short years and now that we are at what seems to be an all time high in Austin real estate, I am cashing out on one property! $125k of straight untaxed profit sounds mighty good to me. Because I have lived in the home as my primary house for the past 2 years I get the advantage of not having to pay any capital gains which is a huge blessing for me. I will keep my other rental property as well as continue holding my performing note which are both also here in Austin.
- I can buy more rental properties in CASH!! My plan is to use the tax-free income and buy two new rental properties in Indianapolis with cash. Not only will I have a MUCH lower mortgage payment on my new primary home but I will also be increasing my passive income to even higher levels with my two new rental properties. This alone will get me so much closer to financial freedom!
- I will still be getting paid a higher cost of living salary. I have worked out a deal with my current employer in Austin to allow me to work remotely. This means I will still be making all the income I get in a higher cost of living city but without the higher cost of living. Honestly the idea of not having to go through rush hour anymore is already making me so much happier. So what will I do with this income? You guessed it, I will use it to buy more rental properties at a faster rate than I have been able to purchase them before.
- Lower Bills!! I will be literally cutting my mortgage in half. I can’t even imagine the amount of money I will be saving on gas also. My current gas guzzler destroys my pocket every week and this will be virtually eliminated. I have also noticed in Indy that groceries and restaurant beverages (beers and cocktails) seem to be cheaper as well which is always a good thing. 🙂
I mean this obviously is a great move for me financially but even on a more personal level, life will be getting much easier and stress free for me. Our bills will be super small, virtually no commute and we will actually be upgrading our new home to something nicer then what we have today. I can’t wait for that!
New Rental property acquisition plan
The last 4 rental properties I bought were all purchased via turnkey providers in which I have had good success with. I was buying these properties in the Midwest and 3 of them were all in Indianapolis. Wow imagine what I could do if I actually lived there and had my boots on the ground trying to score some deals? My new plan is to purchase fixer uppers via wholesalers, fix them up myself, rent them out and generate more cash flow! In theory, I should be able to generate higher returns and have an advantage over choosing what properties I purchase by living in this new city. It is all very exciting to me and I just can’t wait to get out there and start property hunting.
I have had the luxury of visiting Indianapolis multiple times and am always impressed with the city.
- Big City, smaller town vibe. Indy is smaller than Austin yet has all the amenities of big city living. The roads for one are built to sustain a much larger population and as of now, there is very little traffic in Indianapolis. I really like that even though I won’t ever have to deal with the traffic anyways. Not to mention the airport, wow they have a really nice and big airport which I find to be extremely nice.
- City on the rise. I didn’t randomly pick Indianapolis to buy 3 of my existing rental properties. Check out turnkey 1, turnkey 2 and turnkey 3! All the research shows that this city is on the rise. A steadily increasing population, economy, cultural scene and a sports mecca! That is exactly the kind of qualities I look for in cities to invest in. I was surprised to see all the craft brewery places popping up left and right and all the hipsters gravitating towards downtown living also which really caught my eye. I just love that!
I’m obviously not the only one that thinks Indy is a super cool city on the up and up. Check out these fairly recent articles being published about the city.
Honestly the list goes on and on. Indianapolis is a very underrated city in my opinion and is flying under the radar. All great things I want to see and read about coming from an investor and a new resident. Now some people might be thinking this move that I am making is a little extreme or that my plans to speed up financial freedom will go sour but I just do not see that happening. My absolute only concern that I have is having to deal with the cold winters. I am not going to lie and say that they don’t scare me but the truth of the matter is that I grew up in a cold environment in the north-east and the main things I disliked about the winters were the mornings. Having to deal with de-icing the car, shoveling the driveway and then dealing with the horrendous traffic was an absolute nightmare. Well all that is eliminated for me as I will be working from the comfort of my own home. How bad could it be?
Would you ever be willing to make such a drastic change in your life to help you reach financial independence faster?