How to Retire with Rentals in Just 10 Years (It’s Still Possible!)

37 snips

May 19, 2025

Paul Novak, a real estate investor who embarked on his journey in 2021, shares his remarkable path to early retirement through rental properties. He discusses how he transformed his approach after realizing stocks weren't enough, ultimately acquiring five rentals with seven units. Paul dives into creative financing methods, like 401(k) loans and HELOCs, highlighting their role in building a sustainable portfolio. This journey emphasizes that with the right mindset and strategy, retiring in ten years is not just a dream but an achievable goal.

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ANECDOTE

Using Home Equity to Start Investing

Paul Novak used a home refinance at a low interest rate to fund his first rental investment.
He pulled out $12,000 in equity while keeping the same mortgage payment locked at 2.38%.

ANECDOTE

First Deal Outperformed Stocks

Paul's first rental was a multifamily property bought off-market at asking price.
It generated nearly $1,000 monthly cash flow immediately, far outperforming equivalent stock dividends.

INSIGHT

Real Estate Outperforms Alternatives

Real estate investing can still outperform stocks and bonds even in competitive markets like 2021.
The key is comparing real estate returns to other options based on your own money and goals.

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Want to retire early? You don’t need millions of dollars in stocks, retirement accounts, or cash to do it. You might just need a handful of rental properties. Today’s guest, Paul Novak, only started investing four years ago in 2021, but he’s already nearly at his early retirement goal through rental property investing. He may only need one or two more rentals to fully retire in his mid-40s. Want to trim twenty years off of your working career? Follow Paul’s plan!

After realizing that stock investing could only get him to retirement so fast, Paul knew he needed a better path to early retirement. He thought real estate could be the answer. The problem? This was 2021, where every house was going over asking and competition was steep. He finally got a deal done after previous ones fell through and found he was already making 10 times more money than his stocks were giving him. It became a no-brainer to repeat the strategy.

Fast forward to 2025, Paul has five rentals, with seven units in total, and he’s nearly at his cash flow goal to retire from his job. He did it all through some very creative rental financing. One more rental could unlock the holy grail: early retirement, time freedom, and plenty of passive income. And this is just four years into his investing journey!

In This Episode We Cover

How to retire early in just ten years with boring, repeatable rental deals

401(k) loans, HELOCs (home equity lines of credit), and other ways to fund your rentals

Why interest rates don’t matter as much as you think they do

How to run your numbers on rentals so you’re ALWAYS making money

Why you don’t need a dozen or more rentals to reach financial freedom

And So Much More!

Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1123

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

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