I know many people who pretty much live off of passive income from rentals. It is a slow path but slow and steady has been good to them.
I believe the common misconception that many people make is that it is a quick path to wealth and that it is effortless. Neither of these axioms is true. If DONE CORRECTLY it becomes a method to generate income. It does require time, attention and work. Sometimes it is easy and sometimes it is not.
However, you are your own boss… nobody can fire you and you cannot get laid off. It provides a nice protection against inflation and currency fluctuations. If you are in it for the long haul then even if the asset price depreciates, the income flow will not depreciation nearly as much.
[quote=SD Realtor]I know many people who pretty much live off of passive income from rentals. It is a slow path but slow and steady has been good to them.
I believe the common misconception that many people make is that it is a quick path to wealth and that it is effortless. Neither of these axioms is true. If DONE CORRECTLY it becomes a method to generate income. It does require time, attention and work. Sometimes it is easy and sometimes it is not.
However, you are your own boss… nobody can fire you and you cannot get laid off. It provides a nice protection against inflation and currency fluctuations. If you are in it for the long haul then even if the asset price depreciates, the income flow will not depreciation nearly as much.[/quote]
Cool. Thanks.
I understand the risk as there is always risk for reward, but I feel there is a manageable aspect to it as long as your not counting on appreciation. I would’nt mind making a little every month, but I’m mostly counting on the cash flow to pay for any repairs, vacancy, etc. and in 10,15, 20 years I’ll have more and more passive income and work a little less.
Yep you and I and many others are in the same boat as landlords. I am not counting on appreciation at all. Cash flowing now and when they get paid off will be cash flowing much more later.
Out of curiosity went to a new home sale event, where the builder was opening Phase 1 of the development. To my astonishment, the visiting folks bid up the available lots to about 3 times the opening price. Walked away from the event found an older track home for less than half the builder sale price. Had no prior landlord experience and after convincing SO, took the plunge with a promise if it did not work out… we can always sell the house. Now laziness, lack of alternatives and tax benefits has kept us with the investment.
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