Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 5 years ago on . Most recent reply

User Stats

27
Posts
6
Votes
Dhaval Sheth
  • Westfield, IN
6
Votes |
27
Posts

What numbers to use when counting passive income?

Dhaval Sheth
  • Westfield, IN
Posted

Just curious, when people say that they have $5k passive income from real estate for example, typically is this number just a pure cashflow after setting aside the reserves (vacancy, cap-ex, repairs) , or is it cashflow plus reserves? 

  • Dhaval Sheth
  • Most Popular Reply

    User Stats

    139
    Posts
    90
    Votes
    Jaspreet Baveja
    • Lender
    • Palo Alto, CA
    90
    Votes |
    139
    Posts
    Jaspreet Baveja
    • Lender
    • Palo Alto, CA
    Replied

    @Account Closed - Once you know what the investment strategy is, it will make all the difference between Gross & Net. If they're Limited Partners in a Syndication vs Active Buy & Hold rental investors, each of those will come with a different set of "expenses" from the Gross return. For me, as a Private Lender, there ARE no expenses or reserves or anything of that nature. Just a simple - Money Lent out, comes back with Interest and my earnings are: Inbound - Outbound. The ONLY thing I need to account for are Taxes - almost like a W-2. So, yes, TRULY passive investing does exist, at least 90 - 95% passive. Best of luck and stay safe guys!

    Loading replies...