Updated: Sep 20
I wanted to share some highlights and downsides about real estate investing. I'm not a hard core real estate enthusiast...every investing strategy has their pros and cons.
I finally reveal my entire rental property portfolio including how much rental cashflow, plus equity over the past decade+. I thought by revealing this..it might help you in some way in your journey.
Over my investing journey, I've purchased 14 properties over a 14 year period. I share the good, the bad and the ugly with my rental income..or what other people call this 'passive' income.
Here's Exactly How Much Passive Income 7 houses pay me now..
HOW MUCH I MAKE IN PASSIVE INCOME
Definition of Passive income
Passive income is about making money using low-effort ways
I have purchased 14 properties since 2007 and have 7 currently
My best performers have been semi-detached/single-family homes in nice areas
My worst performers have been condos because condo fees have been eating up cash flows and some of my condos are located in oil and gas mining industries which have not been doing well
How much my rental properties are worth
The total market value of rental properties is $3.29M
46% of the property's value is still in mortgages = $1.54M
3 ways of making money in Real Estate
Cashflow = Rent - Expenses
Mortgage paydown a.k.a equity
How much I made last month
Cashflow = $ 2750
Mortgage paydown = $2932
Sum = $5682 for 1 month & 1 hour of work
every month is different as cashflows fluctuate due to vacancies, repairs, etc.
How much I made last year (2019)
$35,170 = Mortgage paydown in 2019
$72, 500 = Appreciation in 2019
Most rental properties are in Ottawa which experiences growth of at leats 5% yoy
Used 3% as a more conservative estimation
$5689 = cashflow in 2019 due to making major renovations/work and aggressively paying down mortgages
spent a total of 35 hours on these properties
sum = $29,481 in 2019 & 35 hours of work or $842/hour
passive income = $96292 for 2019
Investing in real estate is like having a forced savings account that you can't easily access unless you refinance or get a secured line of credit
Real estate investments can provide cash flow, mortgage pay-out, appreciation, and equity growth, which can be used to buy another property
Rental properties with cash flow can be used to pay down other mortgages more aggressively.
LEARN MORE BY WATCHING THE VIDEO
0:00 - Intro
1:30 - 1st Strategy: Traditional Bank Financing Definition of Passive income
2:34 - How much my rental properties are worth
4:15 - How much I made last month
5:25 - How much I made last year
YOU CAN START TODAY
If building wealth and cash flow is your thing, I share a step by step guide on how to buy your first or next rental property and a toolkit for free. Check out it out below.
😍🔥 Get your Real Estate Investing Toolkit now: https://bit.ly/3GvPjhu
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