This is a very personal choice. There are many factors to consider, including:
- ability to produce income in real estate quickly
- family implications (spouse)
- availability of insurance
It mostly boils down to risk tolerance:
- If you are single, it is much easier to calculate engage your risk tolerance.
- If you are married, your spouse’s risk tolerance must also be considered.
The income needed is also a huge factor:
- If you make a lot of money, replacing that money is more difficult.
- If you do not make a lot of money, it can be much easier.
This is my advice to new real estate investors; keep your day job and continue to work your real estate business in your spare time. Once you’re confident you can replace your income, go ahead and take the plunge.