Passive Income With Rental Property

Rental properties can be a great source of passive income once you get a rental up and running.

Passive income with rental property. Now there are lots to ways to invest in real estate but let s take a closer look in particular at owning rental properties and why it s such a popular way to earn a passive income. But they generally charge ten percent of the monthly rental income to care for and manage the property. This is their fee to help make your investment a passive income investment source. We collect 15 000 per year in revenue.

In other words let s say the rental rate you charge for the property is 1 200 per month. My former partner and i bought our third rental property in may. If you are looking to start making real estate passive income or make more than you already are investing in rental properties is an excellent method for that. You can expect to pay a property management company 120 per month.

Though passive income is usually taxed it is typically treated differently than active income by the irs. After expenses including the financing we pocket 3 000 per year in passive income from this rental property. Minor update made in 2020 to reflect relationship status. We paid 0 down.

With an average return on investment roi of 10 6 for residential real estate and a 9 5 average roi on commercial real estate there is serious potential to earn large amounts of passive income.