Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
To the BiggerPockets community,
What have been your best passive investments? By passive I mean less than 1 hour of your time in total a month on the investment. What was the initial cost? How much time did it initially take you to set it up? What is the yearly cash on cash return percentage? And anything else you wish to share about it.
Index funds...took a week or two to learn a proper allocation and takes a little time each year to reallocate and tax loss harvest, if applicable.
Done correctly, there are no passive investments in real estate...there are just some that are less active than others...or they are very active in the building years and then can be systematized.
I only spend a couple of hours per month on my active investments now...doing bookkeeping but I spent substantial time in acquiring and rehabbing them and getting the right management solution in place. I don't spend any time on my passive syndication investments...but I spend a lot of time analyzing hundreds of deals to select them.
BDC's (business development companies). I have a portfolio of about 5 BDC holdings which I use as part of my overall "passive-income" portfolio....each pay annual dividends of anywhere between 7 to 10%.