When investing in real estate people often overlook one of real estate's most important and lucrative attributes. Passive income from cash-flow.
This is arguably one of the most wonderful things in life. What is passive income? Money you earn without with little or no effort. Amazing... and fun too. So how can real estate provide this benefit? Cash-flow. Cash-flow is simply the cash a rental property returns (to you the investor) after all expenses (mortgage, taxes, insurance, maintenance) are paid.
If done correctly, your rental property could bring you several hundred dollars a month in passive income. And... if done with strategy and consistency, you'll be well on your way to retirement from your rental properties.
So let's get to the details... how is this done?
Calculate cash-flow before purchasing your property
1. Calculate overall expenses to own the property (mortgage, taxes, insurance, maintenance)
2. Calculate local rental rates... what you expect to earn from rent
3. Compare these two to find out what passive income will yield!
When you purchase a rental property you're on your way to passive income. You're on your way to earning money with little effort. There's just something great about making money no matter what you do during the day or night. It just keeps coming in.
Imagine you are able to generate $500 in passive income from a single rental property that costs $150,000. You put $30,000 down or 20% of the property's cost (mortgage lenders usually require 20-25% for investment properties).
Now the $30,000 is generating $500 per month... $6,000 per year for an annualized return of $6000/$30,000 = 20%
That's way more of a return that you'll find anywhere else! Using this strategy, you could retire with $3,000 a month by acquiring 6 properties for a total of $180,000 out of pocket.
Retiring on $180,000 is unbelievable, but absolutely possible. In fact, if you look in the right places in the country, there are opportunities to create a huge income and retire with a lot less than $180,000.
Alright! Now it's time to explore some areas where prices have fallen, but rental rates have been on the rise. This has created the perfect divide, and the perfect situation for savvy investors to create huge cash-flow. Remember, it's not always about making the most money, it's about putting it to work in the most profitable ways.
This is arguably one of the most wonderful things in life. What is passive income? Money you earn without with little or no effort. Amazing... and fun too. So how can real estate provide this benefit? Cash-flow. Cash-flow is simply the cash a rental property returns (to you the investor) after all expenses (mortgage, taxes, insurance, maintenance) are paid.
If done correctly, your rental property could bring you several hundred dollars a month in passive income. And... if done with strategy and consistency, you'll be well on your way to retirement from your rental properties.
So let's get to the details... how is this done?
Calculate cash-flow before purchasing your property
1. Calculate overall expenses to own the property (mortgage, taxes, insurance, maintenance)
2. Calculate local rental rates... what you expect to earn from rent
3. Compare these two to find out what passive income will yield!
When you purchase a rental property you're on your way to passive income. You're on your way to earning money with little effort. There's just something great about making money no matter what you do during the day or night. It just keeps coming in.
Imagine you are able to generate $500 in passive income from a single rental property that costs $150,000. You put $30,000 down or 20% of the property's cost (mortgage lenders usually require 20-25% for investment properties).
Now the $30,000 is generating $500 per month... $6,000 per year for an annualized return of $6000/$30,000 = 20%
That's way more of a return that you'll find anywhere else! Using this strategy, you could retire with $3,000 a month by acquiring 6 properties for a total of $180,000 out of pocket.
Retiring on $180,000 is unbelievable, but absolutely possible. In fact, if you look in the right places in the country, there are opportunities to create a huge income and retire with a lot less than $180,000.
Alright! Now it's time to explore some areas where prices have fallen, but rental rates have been on the rise. This has created the perfect divide, and the perfect situation for savvy investors to create huge cash-flow. Remember, it's not always about making the most money, it's about putting it to work in the most profitable ways.
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