Real estate passive income how to#

I buy homes in markets where units are renting for much more than their monthly mortgage payment. My investing strategy is the 'BRRRR' method: Buy, rehab, rent, refinance, repeat. Start small with a well-researched strategy I believe that if you save up enough money and look in the right places, you can get a leg up by investing in real estate - even in an era of sky-high home prices.

Real estate passive income how to#

How to start your own real estate investment journey I work with small family-owned management businesses, whose fees cost an average of 7% of my gross rent per property but can reach up to 20%. To do this from afar, I built relationships with agents and property management professionals in those markets, so I knew I'd have a team on the ground to identify the best properties and take care of my tenants. I bought the cheapest multi-unit properties I could find in the Midwest, mainly Ohio and Kentucky, and fixed them up. When I learned about how much further each dollar could go in opportune markets - where cash flow was high and buying prices were low - I started looking outside of California. I found an even cheaper apartment to share with roommates, and invested those savings plus the money I was making off real estate into the stock market and my investment accounts. In 2017, I decided to ramp up my savings to purchase additional real estate. I made $51,404 that year in gross rental income from all three properties, and while most of that money went towards covering mortgage, maintenance and property management costs, I was also able to take home around $1,800 per month. I financed my second purchase through a traditional bank loan, and I bought the third with a $250,000 loan from a family member at a 4%, 30-year fixed rate. By 2016, I was the owner of three houses.