The old adage of "I am going to invest in real estate because I want passive income" is a false statement that trips up many. If you are purchasing real estate as an investment, plan on putting in the work.
Depending on the size of the building you buy, when you first get started you are most likely going to want to keep as much money as possible. This means you are not going to hire a property manager to handle the majority of issues. You will be fielding maintenance phone calls, working with the tenants on leases and renewals, managing renovations, working with contractors, checking on buildings to make sure it’s kept up, handling vendors for the building, etc. As you can see this can be a real time consuming process. It does get easier once you streamline your processes and have your resident’s following the rules but it is never passive.
If you are truly looking for passive income while investing in real estate your best bet is to invest with a company, like KB4 Property Group, who handles finding the deal, purchasing the deal, and managing the deal. This is a great way to learn more about investing through a company with a proven track record while receiving monthly or quarterly “mailbox” money. This is a true passive investment that can reach double digit returns while you continue to work your full time job or just relax on the beach sipping your piña colada.
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