Single Family Houses vs Multifamily
Single family houses can get you away from a job if you don't make much. What's the best way to really grow your passive income to meet a high salary? What would be an example of a strategy for someone with $50K that is looking to create $5000 monthly passive income?
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@Curtis Curley - I would look for either a single family you could get for 20-30k down and rehab for 10-15k or less. Then you can rent it out and refinance it down the road to pull your original money out. This is called the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat). You could also look to buy a duplex, triplex, or 4 pled using your 50k (keep at least 5-10k in reserve for emergencies) that cash flows at least $200 a door. Say you are able to get a duplex, that would give you $400 a month or $4800 a year if you save all the cash flow. After 3-4 more years you could get another property and build from there. If you are able to save from your income you can buy even faster. You can also try house hacking (buy a multi family and live in one side/unit and rent the others.). This can reduce your house or rent payment to zero which is money you can save towards buying more properties. Combine some of all of these strategies for increased cash flow and savings. You most likely wont be able to make 5k a month off of your 50k but you can get a good start and buy building an inventory of 20 doors or so over time you can get there.