June 18, 2024


Mad about real estate

Rental Properties Income Generation – The Key to Passive Investment

We have been bombarded with reality TV’s “flipping” take on real estate investment but if you want to insure long term wealth one of the best way is rental properties income generation. By acquiring homes, office buildings, apartment complexes and other pieces of real estate and renting them out you can produce an income stream that will last as long as the building does.

Imagine no more nine-to-five grind, no more commuting and no more laughing at your boss’s lame jokes. Wealth and freedom; it’s the new American dream. Except for rare occasions, to be truly wealthy you must own your own business and control the means of production. Why? Because Adam Smith said so, that’s why! Controlling how you make money is also the only way to be truly free. No more bosses, pointless meetings and Christmas parties where you have to dodge the guy from the mail room that gets a little grabby after a few eggnogs.

One of the best ways to begin your journey to financial and cubicle freedom is to have rental properties income generation at your disposal. By owning and renting out real estate and creating rental properties income you are paving the road to freedom one brick at a time. The idea is very simple; you save up enough money for a small down payment on a piece of real estate and then rent it out for more than the monthly expenses. The profit is yours to spend or reinvest in another property and the tenants cover all of your costs. Over time your equity will grow in the property and the expenses will fall making your rental properties income even greater.

So here’s a real life game plan. Say you make $50,000 a year and you save 10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of that every year and invest into some small rentals. If you did that every year for 10 years soon you would be bringing in some pretty nice money for basically doing nothing. There are a variety of levels of involvement you can partake in as well. You can manage the day-by-day operations or your can step back and let a professional management company handle it all for you.

As your income and equity grows you can increase the size and scope of your investments. As opposed to single family homes commercial real estate offers many advantages. With more tenants your risk is spread out so if one tenant goes renegade on you, you don’t have to worry about financial ruin. Commercial real estate is also valued at a multiple of the income generated as opposed to comparable sales like residential pieces. This allows you to fix up a property and get more rent for it while simultaneously increasing it’s value.