I want passive income from a rental property!
This a Rebel type of question!!
Just by asking you already know that buy and hold is where real wealth is created in the real estate industry. We are talking about long-term wealth that allows for true success and freedom.
So to answer your question, Passive income from a rental property comes from two things, one of which is … Your tenants living in your property and the other is the property!
Picking the right tenant and the right property is a winning combination.
If you don’t know or understand the type of tenant you want in your property, then you are gambling on the type of property you are going to get. We have seen a large number of pseudo-investors ask the question but not follow through and it has costed them dearly.
For us, its all about the Tenant (do we dare say, the Ideal Tenant.) These tenants are the clients that will be paying your bills on your investment AND will be putting money in the bank for you!
Your tenant unlocks the key to building your wealth!
So decide who your ideal tenant will look like even before you buy. Know what they like, what they need and where they need to be, so when they rent from you, they won’t go anywhere for a long time.
Decide the amenities that your ideal tenant will be looking for, even before you meet them. Understanding their personal details about their home, family, work, play, education, & shopping, matters. Because it affects where you buy and what you buy. It will help you figure out what you do to make it rent ready. It will give you a much-needed advantage over your competitors.
And best of all, it allows your ideal tenant to find you… because you already knew who they were going to be (and remember you’ve never met them.)
After the ideal tenant is decided, then the type of property can be answered. For example, you want:
- College students: it could be a multi-family complex close to a campus.
- A family: It could be a single-family residence, close to schools, shopping, and parks. You might want to allow pets.
- Short-term stays from business folks: It could be a fully furnished condo that is set up as an AirBNB.
- Roommates: It could be a condo with two master suites.
The goal of the rental properties, when done correctly, is to have it generate monthly cash flow month in and month out with little effort on the part of the owner/investor. We can’t think of anything else that can give you this many options, methods, ways to build your wealth, increase your cash flow, increase your net worth and give you true success than real estate.
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