Fastest route to $10,000/Month Passive Income

108 Replies

@Shafi Noss I agree with you. In the building it really is all about getting your "Net-Worth" up buy acquiring some solid appreciation plays that may not cashflow $10k per month but as long as you can support them during their growth phase you can cash out and reinvest in more cashflow friendly properties or investment vehicles.

Cheers to your success! 🤙🏻

Two ways: 

1.  Buy larger Multifamily properties

2. Airbnb/Short Term Rentals, this of course provides more downside risk and is not entirely passive but can increase your monthly cash flow position tremendously if you're in the right market for it.  

Good luck! 

@Matt Jennissen - First of all....you are doing a great job with working towards that goals with 4 rentals.  Extrapolating that, you would ~20 properties total, generating similar return figures to achieve this.  Or you could buy a smaller amount multi-family properties to achieve the same results.  There are multiple other paths that are too lengthy to describe in a post such as this, but easier to do over a phone call.

What type of investments are "YOU" interested in participating in?  That is probably the next logical question to answer and then creating a plan becomes a little easier from there.

Feel free to connect with me and we can talk off-line if you wish.

To Your Success,

Jeremy


Focus on multifamily or short term rentals. Short term rentals will be easy to acquire because you will have a bigger pool of potential properties (depending on your market). I have acquired 7 STRs in just the last year that put out $800-1000/month cash flow each. 

You could also achieve this on one big multifamily property as well though, which is where my focus is. It just depends on what you like more. But definitely spend some time learning the asset class before jumping in.

Same initial goal here. I'm a proponent of continuing to purchase the SFR and small multi-families and then 1031'ing up to larger properties eventually. With the cash you have on hand this seems like it would be the most realistic. Relationships are key. If you want to get there faster, my suggestion is finding ways to be creative. For example, my team and I are using direct mail marketing to find off market properties, using a combo of private money and hard money to acquire properties for $0 out of pocket (previously we used HELOC) then refinancing later down the road.

Godspeed!

Originally posted by @Isaura Orellana:

No brainer .. Pick up a handful of rental properties in Detroit! If you take the SFR we just rented out section 8 at $1500 a month plus all utilities that we will sell for $70,000 likely at some point this week and the duplex we sold last week for $84,000 that has two cash Covid paying units totaling $1900 plus gas and electric and the two triplexes we sold for $90,000 as well last week that are each receiving $2,100 and $2,200 plus gas and electric and lets say two more SFR's like the one we just placed another section 8 tenant in a few days ago on Montrose who's paying $1266 a month plus all utilities that we will be selling for $55,000 and times that property times two you are cash flowing in the $10K neighborhood for what 70K + 84K + 90k + 90K + 55K + 55K = 444,000 = 1500 + 1900 +2100 +2200 + 1266 + 1266 = $10,232.... Might need one more property like Montrose at 55K to cover all your taxes, PITI, 8% PM, and what little maintenance or Cap Ex because all our properties come fully updated and upgraded. Vacancy would be zero b/c if our cash tenants move out 9 out of 10 times we have someone waiting and ready to move in. And as far as Section 8 tenants are concerned their average stay in Detroit is 5-8 years. So vacancy = 0.

So technically and in essence 7 Detroit rental properties at $500K gets you cash flowing at $10,000 a month. 

Just noticed I had a serious typo. Really not sure how PITI made it's way into my post. There is no PITI in this equation. All purchases were cash purchases. But we would probably have to add one more purchase of an SFR section 8 at $1000 rent and purchase price of $45K to help cover the monthly 8% PM ($900) Tax ($1000) and Minor Cap Ex ($500). So all that being said I remain steadfast that Detroit rental properties are still the fastest route to $10,000 in monthly passive income or cashflow.

@Matt Jennissen Good topic. I used to do flips and active SFH. I switched to multifamily investing in 2015. Though I am a full-time passive investor in multifamily syndications, there may be a potential in sponsoring your own deal or syndicating yourself? A good book if interested "The Best Ever Apartment Syndication Book" This book covers the active and passive side of investing in multifamily. Best of luck.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you