There are numerous ways to pursue a passive stream of income. However, real estate is one of the most popular and most lucrative methods of doing it.
Just think about those people renting their homes, creating a passive income stream for their landlord. You can absolutely achieve this with the right information, resources, and professional guidance.
The first step you need to take to pursue passive income with real estate is to educate yourself. Luckily, you’ve already started just by reading this article!
We’ll cover the basics of how to get your first investment property and build your portfolio with the help of professionals.
What is Passive Income?
Before we start talking about how to achieve passive income with real estate, let’s cover what exactly passive income is.
Passive income is income generated through investments. So, you aren’t actively working to earn this money. A popular saying is that your money is working for you.
There are multiple ways to achieve passive income, including stock investments, publishing books or courses, and more. However, real estate is one of the most exciting and lucrative ways to do it.
Reasons to Achieve Passive Income
Why would someone want to achieve a passive stream of income? Well, why not?
If you don’t have to work for an hourly wage to earn money and can just sit back and let your money earn it for you, why wouldn’t you want to pursue passive income?
When you have income coming to your bank account each month without sacrificing too much time for it, you can build up your wealth and even retire early. This extra income can also help you achieve other financial goals or elevate your lifestyle.
Searching for the Right Property
To begin your pursuit of passive income via rental units, you first need to search for the right property in Reno to invest in.
Some of the most common real estate investment properties include:
- Single-family homes
- Apartment Complexes
- Commercial Buildings
Basically, any type of property you can rent to someone and generate a profit is a good investment. It’s important to decide which property in Reno fits your goals and vision, though.
Take a look at the real estate market and see if there are any great deals out there. You can work with a professional real estate agent to help you find the best investment properties out there.
It’s a good idea to look at foreclosure or short-sale properties because they are often sold below market value. This means you’ll get a great property in Reno for less than it’s actually worth, putting you ahead in your pursuit of passive income.
Look Beyond Your Area
Don’t hesitate to search for an investment property in another location. While the real estate market may not be great where you live, it could be booming a few states over.
You’re probably wondering how you’d be able to manage to maintain the property if you’re hours away. One of the best things you can do is hire a property management company to take care of the property and the tenants living in it.
In fact, 66.8% of landlords hire a property management company due to the distance of their investment property.
Instead of you having to drive out to the property to make a repair, the property management company will handle it for you. Now, this is the true definition of passive income.
Don’t let your location limit you from making a great real estate investment and pursuing a stream of passive income. There’s always a solution.
Crunch the Numbers
Math plays a major role when investing in a rental property in Reno, Nevada. You have to make sure that you’re earning a profit when it’s rented out and not losing money.
Determine how much you can spend on a property and whether or not you’ll have to take out a mortgage. Consider how much you’ll have to spend on renovating or restoring the property you purchase too.
Next, you’ll have to decide what price to set for the rent. This is a tricky price to set because you have to achieve two things: earn a profit and stay in line with the local rental market.
The best way to find the right rental price is through market analysis of similar rental properties and with the help of a professional who knows the market well.
Be sure to also consider the expenses that come along with owning a rental property. These include Reno property taxes, maintenance, repairs, income tax, and any utilities you may be responsible for.
Emphasize Tenant Retention
When you finally have a rental property of your own, it’s time to rent it out and put your investment to work. While the hard work of finding a rental property in Reno is done, now it’s time to find high-quality tenants.
As you search for tenants, make sure to have a thorough screening process to ensure they will pay their rent on time and won’t cause issues. There are too many stories of landlords who have had to deal with terrible tenants.
Once you’ve found high-quality tenants, work hard to retain them. This means getting them to renew their lease over and over. Not only does this save you time, but it also saves you money because acquiring new tenants can be costly with marketing and advertising.
Retaining good tenants is more than just being a nice person, though. You also have to a great and attentive landlord. This involves making repairs promptly and setting up easy ways to collect rent. All of this can be achieved easily when working with a property management company in Reno, Nevada.
Set Realistic Expectations
You aren’t going to get rich quick with just one property in Reno. It will take years to build up your passive income and real estate portfolio in order to achieve this.
So, before you purchase your first investment property, set a realistic expectation about what you want to achieve. At best, you’ll make a few extra thousand dollars a year with your first rental property.
However, with the right determination, mindset, and professional help, you could achieve generous passive income through your real estate investments.
Start Building Your Passive Income with Real Property Management Corazon
Real Property Management Corazon is Reno’s leading property management company. We offer comprehensive services to fully manage and maintain your rental properties in Reno and surrounding areas.
From providing professional advice to retaining your tenants to helping you build a strong stream of passive income; our team of professionals is dedicated to helping you achieve your goals.
Call us today to schedule a free rental analysis with one of our expert team members and start making your real estate dreams a reality.
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