Strategy/Plan to get 40k a year income?

Question

19 year old college student at UF majoring in finance.

What can i do now to achieve my goal of having a 40k a year passive income? Looking to get real estate liscence/join clubs/attend meetings/get internship/get leasing job etc?

Short term/long term goal for post grad?

Want to live a minimalist life in the mountains/beach town. I think 40k a year could support that comfortably while working only a random fun job (eg mountain resort job/beach resort job).

Have my dad as an investor if down payment cash help is needed (100k+ cash most likely willing to invest).

Will Pritchett · Answer

Richard Z.look up "house hacking" on this site. Maybe buy a place to live now and rent out rooms to other students. Then move out and keep renting it after school. One of many ways to get started. My bank looked more favorably on my rental income when qualifying me after 2 years experience landlording. You could start that clock ticking now - if that rule applies to your lending institutions. I would have rental agreements in writing and keep good records for proof of experience. Also, listen to all the podcasts for lots of ideas about niches and the success stories of others.

Account Closed · Answer

Thanks. Ive been hearing a good ways on how to do this. Please keep them coming

Matt Schelberg · Answer

Great goal!  Mine is similar and I am currently 30% of the way toward replacing my W2 income with passive rental income.

You should be able to achieve this with a rental portfolio of 12-15 units that provide $200/door in monthly income.  It will take several years to achieve, but it is very doable.

With $100k, you are in a great position to purchase and rehab with all cash.  Rehab and rent the unit, thereby converting an ugly house to a performing asset, and pull out the cash via a cash-out refi.  Using this method you should be able to do each house in 3-5 months when you are starting out.  Plus you will gain equity and add to your net worth!

Your goal in this low-interest rate environment should be to limit your total cash invested in each deal (after refi) to $5k or less.  Keep your powder dry for the next good deal that comes along.  Once you establish a track record of 3-4 houses it will be easier to attract private financing.

Good luck!