Can somebody who lives off of the income from their rental portfolio help explain the mechanics of withdrawing cash from their portfolio? It seems like living off of rental income could get pretty complicated compared to getting direct deposit from your employer every two weeks. If anybody has a link/article to share, I’d appreciate that as well.
@Dain DaVirro It is based on how much excess cash flow per property. If you figure repairs ,CAPEX, vacancy, property management and any other expense for your property and it shows $200 a month positive cashflow. That is yours to spend any way you want. You want $20000 a month then buy 100 rentals. This scenario doesn't include mortgage paydown or appreciation.
@Dain DaVirro It is based on how much excess cash flow per property. If you figure repairs ,CAPEX, vacancy, property management and any other expense for your property and it shows $200 a month positive cashflow. That is yours to spend any way you want. You want $20000 a month then buy 100 rentals. This scenario doesn't include mortgage paydown or appreciation.
As other said, you live off the cash flow from your properties. The alternative is if you've held them for a long time and they are paid off or have a lot of equity in them, you sell them and live off that money.
@Dain DaVirro Like @Theresa Harris said you can live off the equity. Example: 1 paid off $100000 house. $10000 down seller finance @ 6% for 15 years= $ 809 per month. Learn to use calculators they are your friends.
One thing people have not mentioned is that you should have seperate business and personal accounts. You can put money into a business or take it out of the business. So you take money out of the business by transfering it to your personal account. You should not take it out by charging personal expenses to the business account. Same thing with credit cards have one for business ,one personal, even if they are both in your name.