Passive income is an excellent way of building wealth, saving up for large future investments, or just creating a nice nest egg for the retirement years. Real estate as passive income makes sense because it does not need a lot of hands-on attention. In fact, if you set yourself up for success in the beginning, you may have to do very little toward the end.
Choose a Property
Real estate in the Boston area is a good option. Select properties that appeal to your targeted demographic. For example, homes in an area with good schools are desirable for families. If you cater to the singles market, buy closer to the North End. Keep it near major transportation arteries but not so close that tenants can see or hear them.
Now is an excellent time to work with an agent to run an investment property analysis. This step lets you understand how much you would be able to charge for rent. The analysis shows you whether you break even after purchase costs and monthly expenses or show a profit.
Buy Low and Plan on Making Minor to Moderate Improvements
Create a working relationship with an outstanding general contractor who specializes in preparing a property for the rental market. Doing so lets you buy fixer-uppers, foreclosures, and outdated estate properties.
Of course, no matter what type of property you buy, be certain to get an inspection. Pay close attention to code violations, foundation issues, and water damage.
Once you decide on the best place, the contractor can do minor repairs, cosmetic improvements, and update fixtures. Kitchen remodels for the rental market include cabinets and countertops that are specifically for the builder market. They are less expensive and wear well.
Choose Your Involvement Level as Landlord
Rental properties generate monthly income. If you really want to be completely hands-off, consider working with a property agent who manages the day-to-day tasks. This company would collect rent, screen prospective tenants, handle lease agreements, and send out contractors if there is a middle-of-the-night plumbing emergency. While it does affect your bottom-line slightly, it is a worthwhile investment for a hands-off experience.
Are You Ready to Explore Real Estate as Passive Income?
Boston offers attractively priced single-family units, duplexes, and apartment buildings. Mixed-use properties are among the real estate options that are generating the most interest. Of course, no matter what type of property you choose, contact R.H. Blanchard today to handle the construction details.