Buy Tenant Occupied Homes to Create Passive Income
Updated: Mar 9, 2021
These days thriving on a single income source is very difficult. We all need sources of passive income to help make ends meet and take a breather. Plus, if you have the aptitude and drive, you can build these streams of income into something a lot bigger.
Real estate is perhaps the ultimate source of passive income. However, for people with modest amounts of money to invest, dividend stocks are usually their only option. That is until new innovative businesses like Roofstock made owning income-producing houses more accessible than ever before. With Roofstock, any real estate newbie with an internet connection can buy a rental property with a tenant already in place, in another state where it may be more affordable and just a better deal.
Rental Properties as a Passive Source of Money
If you don't know why simply owning a home is such a great investment, there are millions of pages worth of knowledge on the topic you can soak up over a lifetime. Here's just a few reasons:
1) Real estate usually appreciates over time, because land is a scarce asset.
2) Tax write offs can help offset the costs of repairs and other expenses.
3) It's a tangible asset with real value. Unlike stocks and crypto which can often feel more like a ponzi scheme.
4) And my favorite reason... You can rent out your property for income.
The negative aspects of owning a home can be lengthy as well, since it's not as passive as other sources listed on this blog. However, that's where Roofstock comes in. They'll show you how to outsource to local management companies to help handle the grunt work of owning a rental property.
Immediate Passive Income with Roofstock
Roofstock is basically a place where you can buy out of state, single family houses with rent-paying tenants already in place. Take me for example. I became a customer of theirs several years ago when I realized how costly it'd be to own a rental property in my hometown of Los Angeles. With my other problem being I was a newbie to the whole industry, I really needed a company to hold my hand through the process. That's when I discovered Roofstock.
Roofstock has a great staff of helpful advisers and support. After selecting a house in Memphis, they guided me through the escrow process. Their fee was minimal compared to the average fee of a broker. Here’s other ways that Roofstock sets themselves apart:
1) An easy to understand platform for researching financing and property managers.
2) No geographic borders. You can access listings all over the country, then make a purchase without ever leaving your home.
3) Their inventory of houses was carefully curated based on their investment potential.
4) Analytics to assess the quality of the houses and neighborhoods.
5) A guarantee that includes a 30-day money back.
A Timeless, Valuable Asset
According to a survey, 97% of investors plan to increase their money allocation into real estate in the next 18 months. If you have the extra money and a good credit score, there may be no better investment. If you don't have the extra money, save up. Use the other sources of income mentioned on this site and accumulate funds, because everyone should have a portion of their worth invested in this timeless, valuable asset. But never forget, as with any investment, do your due diligence!
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