Just made my first exit.....What Now?

[Dan J.]

Hi all - I just made my first exit of a property in Southern California that I was living in and BRRR'd. Trying to get started in rentals and truly passive income. Having trouble choosing a market / price point to invest at. Would appreciate any advice / experience ! I have had a lot of different feedback from different mentors, I have the capital ready...just have to make decisions! Thanks in advance :)

[Scott E.]

Quote from @Damian Peralto:

@Scott E. Why dont you consider owning a rental home passive income ? What do you consider truly passive income?

Owning a rental property even with a property manager is still demanding of your time. There is always a leaky faucet, a broken refrigerator, a hot water issue, a sprinkler head gone bad, etc. There are bills to pay (mortgage, utilities, gardiner, taxes, etc). There are tenants to screen and approve in between leases. And from a tax standpoint there is accounting that needs to happen along the way to ensure you are maximizing your tax benefits.

A lot of these things can be delegated if you have a team (which most smaller investors don't). So that's why I don't look at owning rental properties as true passive income. 

I would consider true passive income to be if you invested in a syndication, a REIT, a bond, etc and you were just cut a check one the first of every month without having to lift a finger.