The best of Passive Income

[Kenneth Garrett]

The boring aspect of passive income is consistent and slow.  It’s not glamorous.  It’s not full of HGTV shows.  It’s the slow methodical system.

Why would someone want to be a landlord?  Well good question.  There are many aspects of passive income.  There are rental units of sfh, apartments, mobile parks, etc.  Storage units, vacation homes, short term rentals, private lending just to mention a few.

The advantage of rental units provides 4 concepts

Mortgage Reduction - Tenants pay mortgage which pays down the principle.

Tax Deductions - Operating a business provides the ability to have write offs.

Appreciation - Property increases in value over time.

Positive Cash Flow - The ability to put money in your pocket with little active involvement.

Mark Kohler (attorney and cpa) describes it this way.

Buy a property for 100,000         10,000 down payment                90,000 mortgage                     Mortgage Reduction - PITI reduces mortgage by 2000 - 20% ROI Tax Deductions - Average cash flow property loses 6000 at 30% tax bracket our return is 2000 20% ROI Appreciation - We will use 5% it equates to 5000 50% ROI              Cash flow of 100 each month or 1000 each year 10% ROI

Total return is 100% 

Buy a rental each year and set yourself up for generational wealth.

So be boring and be wealthy.

Have a great time investing.