We believe we have aroused your interest in passive income to a large extent because, let’s be honest, everybody likes earning money without making too much effort to achieve that. Once you set your mind to it and decide to invest certain financial means in reaching your goal, you can eliminate any potential obstacles for buying a property quite easily. Luckily, a genuine professional in this field Imma Giocoli, a Broker Owner of Tyler Vincent Real Estate, is always at your disposal to assist and handle any inconveniences or doubts you might have in this endeavor.

Now, the time has come to utilize all of our knowledge and deal with some number crunching. We are here to illustrate how to calculate the passive income you can expect from your rental property and how to get the right rental property in the first place. Remember that this mission does initially require time, hard work, commitment, and intense attention, but later you can relax knowing that your effort will pay off. So, let’s get down to work.

Revise first

Before you start exploring the current real estate trends in your attempt to find the perfect rental property that fits your requirements and budget, revise the critical factors you need to pay attention to. These include:

• The amount of money you have at your disposal because you will have to make the down payment. It is usually 10 – 20% of the buying price. Understandably, this is closely related to your gross income too. So, grab a calculator and do the math carefully.
• The total expenses buying the rental property will inflict on your budget.
• Real estate taxes you are obliged to pay once you become a homeowner and a landlord.

The above-mentioned dynamics will clearly show whether the timing is right for buying a property. Depending on the numbers you get, you might want to postpone the purchase for some time or maybe start your search for some other, more viable solutions.

Figure 2 Do the math carefully before you make an investment.

Alt.tag: A calculator you need to calculate your expenses and the passive income you can expect.

How to find the right rental property?

The answer is simple – be a patient, careful, and diligent real estate market explorer or contact Imma Giocoli and save your time and effort. She will help you by introducing you to all the things you need to know about buying real estate. Bear in mind that it is critical to find such a property that will provide you with the revenue higher than the expenses you will have to pay. Only this way will you get the passive income you desire.

When planning on buying real estate, you need to plan ahead. Making random choices is the luxury you cannot afford in this case, if you want to avoid making a mistake and investing in a property that is far from being profitable. Hence, plan the whole process well in advance.

Start from reputable, relevant websites like Zillow, for example. Choose the state, city or area you are interested in and check the listings. The more time you invest in this activity, the more you can expect to find something affordable, cozy, and definitely worth considering.

Figure 3 Invest your time to find the property worth investing in.

Alt.tag: An illustration of a woman holding a picture of the real estate she has chosen.

Once you find something interesting and in accordance with the criteria and requirements you have set yourself, contact the listing agent and request the necessary information. Consulting an accountant to find all about any tax advantages in the area you are considering is also an important step. Finally, when you complete all these errands successfully, the time has come to deal with the numbers and make sure the rental investment you are about to make is going to pay off indeed.

Crunching numbers – passive income in practice

We are going to explain the passive income in practice – how you can calculate the amount of money you will get passively after investing in a rental property. If what you see fits your vision of this endeavor, start making steps to reach your goal. If you come across an obstacle, Imma Giocoli is there to help with the priceless pieces of advice and her expertise. Hopefully, you will soon contact respectable movers like damovingnyc.com too to start relocating furniture items and assist you in preparing the new property for tenants.

When you find a property that you like, you need to check the purchase price first. As an example, we have chosen a two-family home in Bridgeport, Connecticut, that costs $339,000. The monthly expenses you can expect here include $523 for real estate taxes and $110 for homeowner’s insurance. If you opt for a 20% down payment on this purchase, you will need $67,800 initially. Understandably, your mortgage interest is also to be included in the list of monthly expenses. So, to conclude, you will need $1,851 for monthly expenses regarding this property. Remember that we are talking about conventional financing here and not the FAH since it would require you live on the property you buy at least for a year. After this period expires, you can do with the property whatever you want.

Now, the next stage in this process is to analyze rental ranges in the area the real estate you are considering is situated. In Bridgeport, Connecticut, you can expect to get $3,200 in rent for a two-family home on a monthly basis. So, finally, do the math. The numbers show you can expect around $1,400 of passive income in these circumstances. Doesn’t it sound great?

Figure 4 Passive income is manageable if you make the right choice and do the math right.

Alt.tag: A lot of dollar banknotes.

Down payment problems

We have emphasized that money is the first and key part when investing in a rental property. Most often, people use their savings for the purpose, but what happens when this is not enough? Well, do not fret about that because there are some alternatives to go for. Firstly, you can choose to buy a property in the state which offers 100% financing. Also, finding a partner for this investment and sharing the expenses and the revenue is also an option worth considering. Be creative, explore your options thoroughly and you will find a solution.

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