20k a month in passive income?

Multi-Family and Apartment Investing
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20k a month in passive income?

Doug Martin
Tampa, FL · Member since 2017 · 2 posts · 13 votes

I am just begening in real estate investing obtaining as much knowledge as I can before I dive in. I understand that real estate is a slow grind and in by no means of getting rich quick. My first goal of mine was wanting to produce 30k a month in passive income but then i thought that may be reaching for someone just starting out.....so i lowered it to 20k.......Any idea how much time and money it would take to accumulate that many assets? Can it be done? Where do i start? Im currently in Florida and I also live in California. For capital I'm willing to invest in the venture is in the range of 1.8-2.3m. 

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Mark Gallagher
Flipper/Rehabber · Allentown, PA · Member since 2011 · 1k+ posts · 701 votes
9y

@Doug Martin

Lend $2M at 12% and you'll obtain your $20,000/month passive. I would say that's pretty easily attainable. 

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  • James W.
    Jersey City, NJ · Member since 2016 · 170 posts · 12 votes
    7y

    Old thread but here's a response - 12% Debt on 2MM is 20K a month. 

    Easy.

    I do it and I am happy. But what bothers me now is no growth of the Principal. 

    Growth comes with Equity.

    I find myself struggling with allocating between the two, and my problem is not the yield. 

    Its the time for which money is tied up in Equity. Its typically 3-5 years, if not more.

    Also, while Passive Income is great, Debt tops off at 10-12%.

    Meaning you need a lot of capital to generate significant monthly income.

    One could possibly generate the same 20K-50K monthly with much less capital if running a successful business. 

    Except it will take serious work and engagement. 

    One could argue that Equity projects can generate similar 30% returns any day. 

    But the problem is such high yield projects are typically ground-up constructions, and you have to wait till the sale is completed to see the money, which could be between 3 to 5 to 7 years. 

    Running a business on the other hand, may be cash flowing in a couple months, if not immediately. And could be much higher yield like 50-100%.

    I am actually on the look out for a business that could generate 50% yield on investment.

    Like 50K a month on a 1-1.5M business. 

    Any suggestions? 

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  • Eman Nofal
    New to Real Estate · 92660 · Member since 2023 · 3 posts · 1 vote
    3y

    Maybe look into multi family or commercial properties or become a private money lender or accredited investor. That should get you to your goal, time frame depends on your persistence and networking abilities. 

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  • James Free
    Rental Property Investor · Fort Collins, CO · Member since 2015 · 158 posts · 327 votes
    11mo

    Sadly, the Doug Martin who appears to have authored this thread is now reported dead at age 36.

    https://www.tampabay.com/sports/bucs/2025/10/19/doug-martin-...

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    11mo

    Assume 8% returns so to get $20k you should be around $3M in cash. 

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  • Garret Rumbea
    Inland Empire, CA · Member since 2017 · 151 posts · 79 votes
    11mo

    @Doug Martin props for taking time to learn before jumping in. And you’re right, real estate is def a long game.

    From experience, $20k/month passive is doable, just depends how you want to approach it.

    If you’re going the passive route, most multifamily syndications pay around 6-8% cash on cash so $20k/month (240k/yr) would take roughly $3M invested. With your 1.8-2.3M that’s closer to 10-15k/mo plus upside when deals refi or sell.

    I’d just avoid putting everything in one place even within real estate. You could spread that across multiple deals in different markets, with diff operators and even types of deals without stacking risk. 

    If you’re going the ever decide to go active, it’s a diff game. More time and learning up front but more leverage through fees and equity. 

    Even though real estate is an amazing wealth builder probably not the best idea to park everything there, and might be a good idea to keep some liquidity outside of it for flexibility and safety if markets shift.

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