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BOOMERS: EXIT THE RAT RACE & Grow Passive Income For Life


After becoming a Realtor® in 2002, AJ Hazzi noticed a gap in the real estate market...

After becoming a Realtor® in 2002, AJ Hazzi noticed a gap in the real estate market...

Jun 7 14 minutes read

BOOMERS: EXIT THE RAT RACE & Grow Passive Income For Life

By AJ Hazzi, founder of Vantage West Realty

Your 2022 Retirement Rescue Plan

Most Baby Boomer clients I’ve been speaking with lately are feeling very frustrated...

Frustrated because financial planners have been telling them the same thing for years: that they’ll need a couple of million dollars saved to comfortably enjoy retirement.

Based on the returns offered by most financial products out there, that assessment is unfortunately quite accurate.

Right now, the majority of Boomers have their net worths tied up in low-yield savings accounts and expensive primary residences that yield almost no cash flow.

To top things off, inflation is roaring and increasing the price of almost everything.

But the good news is, there’s a way to protect yourself going forward.

After years of steady price growth in Canadian cities, there’s never been a more advantageous time to cash in your primary residence, downsize your footprint, and experience the freedom of exiting the rat race in style.

If you get it right, you’ll earn passive income for life and watch your net worth continue to grow well into your retirement years.

Worry No More

Worried about the legacy you’re leaving behind for your kids and grandkids?

Concerned about getting off the straight and narrow path with only a fraction of what you’ve been told you need to retire?

I’m going to show you how a $500,000 investment - with 25 years of runway and conservative growth expectations - can produce enough income to make your “elegant exit” and grow into a sum of money significant enough to create multi-generational wealth.

The 2022 Exit Strategy

I have had the pleasure of consulting with a fair number of Boomers who wanted to strategically invest their nest eggs into British Columbia real estate and live off of the cash returns.

I’m going to share a few different examples of how I’ve helped individuals and couples use real estate investment strategies to fund their retirement, beat inflation, and set something aside for their loved ones.

Each of these successful game plans took less than six months to a year to execute – with no investment expertise or MBA required on their part.

Case Study #1: Tom

This is a real-life story about a frustrated investor who - for the sake of privacy - we’ll call Tom.

Tom had always been a risk averse person, which allowed him to  save up a handsome nest egg of about $500K. Half was saved in a Registered Retirement Savings Plan (RRSP), and half in low-risk stocks, bonds & GICs.

He was about 3 years away from retiring from his $75K per year job with a great credit record. Following the conventional "wisdom", Tom diligently paid down his mortgage and only had $100K left outstanding to own his home, which was now worth a cool $1.2 million.

By most people's standards, Tom had made it - he secured a safe future for himself and his family.

The only thing keeping Tom up at night was the fact that he busted his hump his entire life, but was now facing the impending reality of living on the returns of a low-risk portfolio that could only generate $30K per year... for the next 20 to 40 years! (Based on a $500K portfolio with a 4% annual return ($20K), plus his $10k annual pension).

Tom and his wife still wanted to travel, check items off of their bucket list, and spoil their grandkids from time to time.  Tom needed a way to change the outcome of his golden years.

After reading a few of my articles, Tom came into my office and asked if I had any bright ideas to help him meet his financial goals. He was afraid that his fixed income wouldn’t be adequate to enjoy life in Kelowna - let alone travel the world.

As a risk averse investor, he had always been afraid of buying rental property.

He heard the horror stories of tenants doing the midnight dash and leaving the property in bad shape.  And he didn’t have the time of day to be running ads, screening tenants, handling maintenance, or chasing down rent payments.

What he did like about his current investment portfolio was that it generated a passive, hands-off income.

We spent the next hour or so going over his finances, and I outlined an investment vehicle we’ve used at Vantage West Realty to generate completely passive returns - while eliminating the biggest risks associated with owning a rental property.

Tom asked me to sketch up a personalized plan and present it to him and his wife. I welcomed the challenge.

Tom’s Plan

Tom had around $250K invested in non-registered funds that were earning a very modest return. We discussed an opportunity in a limited partnership called Cashoffer LP that would offer a rate of return 5 times higher than his current portfolio.

The strategy of the Cash Offer LP fund is quite simple:

  1. Sophisticated investors like Tom pool together their capital then make discounted cash offers on homes (at least 10% off of market value) to highly motivated sellers.
  2. The partnership improves each property with cosmetic improvements that increase the property value.
  3. The home is either resold at a profit or offered as a rent-to-own opportunity to the many Canadian buyers who do not yet qualify for a mortgage.

Tom liked this concept for a few reasons:

  • He wouldn’t have to take on new debt
  • He didn’t have to offer a personal guarantee the partnership has its own lending arrangement
  • It’s a hands off investment managed by real estate professionals who live and breathe housing (and have major skin in the game)

Now that Tom is invested into a diverse portfolio of more than a dozen properties, he sleeps well knowing he’s earning an 8% annual cash flow - and expects to double his capital in 3 to 5 years.

The combination of buying at a discount with an instant cash offer, then selling at a premium with creative buyer terms creates an exceptional return for our investors at Cash Offer LP.

Unlocking Tom’s Home Equity

Most of Tom’s saved equity was essentially frozen into his largest asset – his primary residence worth $1,200,000. By accessing a line of credit for less than $8K per year, Tom could draw on around $880K in home equity.  We decided not to over leverage and only re advanced up to 50% of how homes value freeing up a 500k Line of Credit.

The plan was to invest this equity into a long-term multifamily holding property. I showed him one he could buy for $2 million with a $500K down payment.

After covering for expenses - including the interest on his line of credit, the property would produce an annual net revenue of $25K.

Unlocking the RRSP

The last piece of the puzzle in Tom's quest to move from non-existing returns into the land of double was to put his RRSP's on steroids.

I showed Tom how he could invest his RRSP's into a self-directed account and essentially become his own bank. That means he would be free to allocate funds into real estate investments and earn a handsome annual return.

There are many successful Real Estate Investment Trusts that will pay a 8% dividend and allow you to be totally hands off. With Tom's new plan, he can expect to earn $20K per year on his $250K of registered funds.

So now let's take a look at what Tom will have 3 years down the road when he decides to pull the plug on work and set his sights on that bucket list.

CashOffer LP Investment

    $40,000 (16% annualized return) 

Multi-Family Property

  $30,000 (6% annualized return)

RRSP's in a well-managed REIT

    $20,000 (8% return on $250,000)

Canada Pension Plan


Tom's Pre-tax Earnings

$104,445 per year

A Dream Retirement

With a six figure income, Tom had almost doubled his working salary – and he didn’t have to trade his free time to earn it.

With $1,100,000 of his cash in the real estate market earning him his dream income, all of his hard-earned equity now does the heavy lifting. To replicate those returns with traditional investments, he would have needed to save close to $4 million.

In addition to this amazing cash-flow, Tom's apartment building is now going up in price, further increasing his return on investment.

The best part of this entire process was helping Tom see what's truly possible in his retirement years with strategies like BRRR.

As this 55 year old investor approaches 75 years and looks towards succession planning, he will have a debt-free portfolio worth nearly $4 million producing an income of around $250K per year.

How’s that for a legacy?

If you want to learn more about syndicated real estate investments like Cash Offer Canada, and other ways to generate double-digit returns in real estate, contact me directly below.

More Successful Case Studies

Case Study #2: Condo Charlie

Our second success story is about a single male in his 50s who we’ll call Condo Charlie.

Condo Charlie sold his house and business in Toronto then moved to the Okanagan with $1,500,000 in cash. Condo Charlie does not want to work, and the best part is - he doesn’t have to.

Dream home: A small, new condo unit in Downtown Kelowna.

Investment strategy: Invest his remaining balance into residential real estate with hopes of earning $50,000 per year passive income.

Step 1: Get him situated in town.

Charlie purchased a beautiful, modern, one bed loft for approx. $400,000 in the downtown core that’s close to nightlife, restaurants, and amenities.

Step 2: Purchase investment properties. 

We found a multifamily property within 3 blocks of his loft for $650,000 that could bring in $48,000/yr. The triplex was financed using a 35% down payment of $227,500. 

  • Net income: $22,200

The next purchase was a duplex in an affordable neighborhood 10 mins away for $630,000 that brought in $43,200/yr from tenants.  The duplex was financed with a 25% down payment of $157,500.

  • Net Income: $12,600

With $150K left, we found a duplex about 90 mins out of town with excellent potential to raise the rents. He purchased it for $350,000, with 35% down ($122,500).

  • Net Income: $13,200

Portfolio Value

 $1,610,000 (not including the condo)

Total Down Payments


Gross Annual Income


Principal, interest expense, taxes, insurance, and contingency


Net Income

$48,000 / year

Charlie also has a line of credit available to him on his new condo. Should he wish to do so, he can lend or invest up to $200K to net a further 5% gain of $10K per year (8% interest, less 3% on the Line of Credit).


Case Study #3: Resort Property Randal & Rebecca

Randal and Rebecca are a mid 40’s couple who sold their property in Vancouver and relocated to Kelowna with plans to retire and invest their $500K nest egg into rental housing.

Investment Strategy: A combination of one 8-plex multi-family property and 3 resort-style residential units.

The anchor investment was an 8 plex purchased slightly out of town for $900K. Since it’s a commercial property, it required a 25% down payment of $225K. Including buying costs, their 8 plex investment cost $250K.

The remaining $250K was spent putting 20% down on condominium units ranging from $350K to $450K

These waterfront condos were located in areas with special hotel zoning, which allowed them to do short term rentals during the off season. The wife of this dynamic duo would manage the condo units, while the husband would handle the maintenance of the 8 plex.

Here’s how the number shook out:

The 8 plex grossed $144,000 per year (each unit $1,500/mo.) Principal, interest, tax, insurance, and contingency: $77,000.

  • Net Income from 8-plex: $23,000

The 3 condos grossed $124K per year ($2,200/week for 12 weeks;  $1,900/mo. for 8 months). Principal, interest, taxes, and strata for all three units totalled $80,000.

  • Net Income from condos: $44K per year

  • Total Portfolio Value: $2,100,000

  • Total Net Income: $51,000 per year

In Conclusion

Now that you’ve seen what’s possible with a solid real estate investment strategy, here are some final thoughts to consider.

Let’s assume you can sell your present home at a profit of $500,000.

Investing this amount with a successful REIT can return 8% per year and yield a $40,000 annual income.

With a conservative housing price growth estimate of 3.5%, the investor could see a $56,350 capital gain in the first year alone.

  • REIT Income: $40,000 per year

  • Capital Gain: $56,350 per year

  • Net return: $96,350 on $500,000 (19.3% ROI)

Now assuming the 55 year old investor is playing the long game with these properties. Let’s explore the amazing potential of compound growth over a long timeframe.

After 25 years of 3.5% growth - as our retired investor approaches 80 years young - will have a debt free portfolio worth approx. $3,200,000 producing an income of $250,000 per year.

  • LONG-TERM WIN: $250,000 per year and a $3,200,000 portfolio.

How’s that for a legacy?

For a detailed analysis and long-range proforma of this plan, reach out to us at (250) 717-3133 or [email protected]

Vantage West Realty Inc.

Kelowna, BC Top-rated Real Estate Agency

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