If you are looking to replace your daily income that comes from working daily for an employee, then real estate is a great tool to accomplish this task. Buying and holding real estate is a great way to provide passive income. For example, if you want to replace a salary job of $80,000. Start by purchasing a rental house and building equity until the houses are paid off. Let us say you collect a net rent of $800.00 on each rental house.
Then your goal would be ten homes to replace your salary job. People will always need a place to live, however, keep in mind that location is everything when picking long term rentals. If you have the right location not only will the property go up in equity it will also be easier to rent. The key to owning long term rentals is how you manage them.
There are two options in managing your property. You can manage them yourself or hirer a property manager. If you manage them yourself some tenant might take advantage of the empathy that a landlord shows when working with the tenant. Sometimes the tenant takes advantage of landlord by either not paying the rent or not paying the rent on time. Even employing a property manager tenants can still struggle with the rent.
A more passive way to manage property is a good property management company.
So, what do I look for when hiring a property management company? The first thing I look for is the company’s reviews online. Then check references from other owners and proceed by interview the manager who is running the company and lastly check the real estate agent that is showing the property to the renters. I will also check what their protocol would be, when renting the property, and their accounting methods. Price is the last thing I check before deciding which company would be best for me.
Vacation rentals can also be a great long-term investment. The profits are very lucrative and can be managed by well-known vacation property rental companies, such as, Airbnb, HomeAway, and Flip Key.
When looking to get in the real estate business please consider that like a stock that goes up and down and the dividend is always paid out, the real estate market works the same way with fluctuations in the market but and rent always seems to be collected. Usually, the real estate market performs with a three percent yearly appreciation. So, enjoy the increase in equity and the freedom that you created by investing into passive income through real estate.
For more information on real estate strategies you can go to www.DiverseInvesting.comorpurchaseThe Road Map to Investing on Amazon.
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