Interested in earning income from the comfort of your own home? Then one of your goals should be to generate passive income. Passive income can be defined as regular income earned with little effort. Essentially, it’s possible to earn money around the clock, even while you sleep. All this can be accomplished with the right real estate investment strategies.
It Does Take Work
It’s important not to be disillusioned into believing launching a passive income in real estate doesn’t take a fair amount of work. Once you do launch a passive income, you’ll have to work to maintain it. However, the great thing about it is you no longer have to work a standard 8-5 job to earn passive income. Put in as much or as little work as you want, on your own schedule.
Passive Income with Rental Properties
First, it’s important to understand real estate is not only an investment, it’s a business, especially when investing in rental properties. To really earn, it’s best to have a direct hand in the management of most properties. Ideally, you’ll generate income from every tenant and every piece of property invested in. To do this, market your property and interact with the tenants. Know how to sell your rental service.
Do plenty of research to determine if a property is capable of generating positive cash
flow. You’ll need to figure out growth rates, how diverse the industry is, population trends, and demographic cycles.
Types of Rental Properties
There are quite a few property investment types available. To earn the fullest income from investment properties, it’s important to appreciate all of them and consider what they can do for you. Some options include:
- Residential properties.
- Duplexes, triplexes, and fourplexes.
- Apartment buildings.
- Vacation homes.
- Commercial properties.
Jason Hartman believes the most opportunity lies with residential properties such as single family homes.
Creating Positive Cash Flow
To create positive cash flow, monthly rent should earn enough to cover upkeep on the property, mortgage, property
taxes, and additional expenses with some profit remaining. The best way to accomplish this is to buy well-maintained, bargain-priced properties in ideal locations. Some of the best locations are in urban and sub-urban areas, but never make an investment without doing the proper research.
One of the most important factors to really earning in real estate is location, which is why it’s important to never making an uneducated guesses. Do your best to know what you’re getting into, and with the right strategies, you can really begin to earn. (Top Image: Flickr | 401(K) 2012)
The Young Wealth Team