Stress Free Investing


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Every real estate investor wants to make as much income as possible. They gather properties hoping to generate cash flow. The best kind of cash flow for investors is passive income. Passive income is money that comes in on a regular basis without the investor having to do anything. How do your investment properties turn from active investments into passive investments?

Keep in mind that you are going to have to take care of all of the tenants, their needs, and the property as a whole.

Multi-Unit Properties

Real estate investing is a numbers game. The more families you have paying rent on one property, the greater your overall income would be. By dividing a property into smaller units, you create more available rental properties. You also pay one mortgage. For example, you have one house at 3,000 sq.ft. divided into 3 units. Your mortgage on the property is approximately $300,000. It’s mortgage is $838 dollars a month. The rent on each 1,000 sq. ft. unit is $700 a month. That leaves you with $2100-838 = $1262 to pay other expenses.

Apartments are Passive?
If you are a hands-on investor and landlord, it would be hard to create passive income. You would be working too hard. If you kill yourself running the properties, you are not going to have time to look for deals for your real estate investment business. Therefore one or more parts of your business will fell neglected. Instead, try handing off some of the responsibilities to someone else.

Property Management Companies

Property management companies are designed to take the responsibilities for caring for properties. They handle all of the responsibilities associated with collecting money, maintaining the property, and handling the tenants. By taking on these day to day tasks, real estate investors can focus on the real estate side of the business. Most of them charge a certain percentage of the monthly rental income for their services. For the peace of mind, they are well worth every penny.

Look for a Certified Property Manager (CPM). These are managers that have taken a series of courses to improve their management skills. Upon completion, the potential CPM takes a big test. When they pass, they receive the CPM designation. They are the property managers you want.

For more information on real estate investing, visit us at HomeVestorsFranchise.com. We buy houses in all conditions, and we would love to buy yours!

 

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