You'll gain priceless experience.

. ($90,000 minus $73,893.48) you will get the gain on sale of $16,106.52.To factor in appreciation, simply multiply the appreciation number to the original purchase price and add that together to make your sale price.

There's nothing like passive income. 90% of households across the country need additional income and I can't see any better way to securing those funds than being a real estate investor.If you just want to make some extra cash for whatever reason, this is it.

If you have lived in a property for at least 2 of the past 5 years, when you sell it then you can have a gain of up to $250,000 ($500,000 if you're married) and not pay capital gains taxes.

So you could buy on the equity markets a 'put' (option to sell the investment at a net gain, if the market turns down) or a future (locked-in price for the home market index in your metro region) for 9 nine out to protect much of the downside, like insurance.It looks straightforward enough to buy options "insurance" - some volatility like stocks but well within the realm of rational investing - not a gimmick.

A lot depends on your goals.Here is a previous thread that may give you some answers.https://www.biggerpockets.com/forums/55/topics/103905-another-newbie-question---if-you-had-400k-how-would-you-spend-itYou also need to decide how active or passive you want to be.

For the new investors that want to create passive income, what route should they choose to reach that goal?

This is a great way to gain experience which was also my strategy.

It is quite exciting and nerve racking at the same time.Looking at doing a buy and hold strategy to generate passive income (I will sell if the market is right and I can upgrade properties).

But I held off.I never even looked at the property in person.Next time something like this comes up, I'll try to work out a deal where I don't have to put 20% of my own money down, and can gain the equity in other ways.