tRACY sLATER, bRINKOETTER rEALTOR

Rental income

September 16, 2019

 Overview: Investing in rental properties is an effective way to earn passive income. But it often requires more work than people expect.

 

If you don’t take the time to learn how to make it a profitable venture, you could lose your investment and then some, says John H. Graves, an Accredited Investment Fiduciary (AIF) in the Los Angeles area and author of “The 7% Solution: You Can Afford a Comfortable Retirement.”

 

Opportunity: To earn passive income from rental properties, Graves says you must determine three things:

  • How much return you want on the investment.

  • The property’s total costs and expenses.

  • The financial risks of owning the property.

For example, if your goal is to earn $10,000 a year in rental income and the property has a monthly mortgage of $2,000 and costs another $300 a month for taxes and other expenses, you’d have to charge $3,133 in monthly rent to reach your goal.

 

Risk: There are a few questions to consider: Is there a market for your property? What if you get a tenant who pays late or damages your property? Any of these factors could put a big dent in your passive income.

Share on Facebook
Share on Twitter
Please reload

Featured Posts

How to save money: 20 savings tips you can use to reach your financial goals

March 18, 2019

1/9
Please reload

Recent Posts