Key facts
- Todd Baldwin bought his first property at 23, using house hacking to generate cash flow.
- By 28, he was a multimillionaire and left his corporate job to focus on real estate.
- He invested over $1 million in Vanguard's S&P 500 ETF (VOO) in 2021.
- The VOO investment yielded an approximate $800,000 gain.
- Baldwin sold his rental properties to dedicate more time to his family and a new construction project.
Todd Baldwin, a millennial investor, achieved early retirement by strategically combining real estate investments with a significant allocation to an S&P 500 index fund. Baldwin purchased his first property at age 23, utilizing a house-hacking strategy by renting out rooms in his primary residence. This approach generated substantial cash flow, covering his mortgage and utilities while providing an additional $1,500 per month. By age 25, his net worth had crossed $1 million, largely due to rental income. At 28, he became a multimillionaire and left his six-figure corporate job to fully commit to real estate.
In 2019, Baldwin expanded his real estate portfolio by acquiring a duplex, which he converted into a short-term rental. Two years later, in 2021, he invested over $1 million in Vanguard's S&P 500 ETF (VOO). This stock market investment proved highly successful, gaining approximately $800,000 by the time he spoke with Business Insider. Baldwin described the stock market's growth as "almost like a loophole."
Baldwin acknowledged that his success was influenced by starting young, earning a high income, and investing in the Seattle area during a period of strong market appreciation and favorable interest rates. He noted that while real estate offered more control and accelerated wealth-building early on, index funds provided a simpler path to continued wealth growth without demanding significant time or effort. He contrasted this with the demands of managing properties and short-term rentals, which he likened to running a hospitality company.
While Baldwin has since sold both of his rental properties to focus on family and a new construction project, he has not entirely abandoned real estate. He plans to list a converted train caboose on Airbnb once his compound construction is complete, aiming to generate rental income again. For now, however, his index fund holdings offer a way to grow his wealth passively.