10 Tips from the Real Estate Passive Income Playbook
Invest for the long term – focus on steady cash flow and equity growth rather than flipping.
Focus on aspects other than cash flow – added value comes from property value increases, rent increases, tax benefits, cost segregation, principal reduction and refinancing to put money into other properties.
Invest in median-income price markets.
Stick with new construction – better to own fewer properties of better quality than many properties with potential maintenance issues.
Let experts manage your properties.
Rental properties are for cash flow, not for charity – have a property manager as your go-between, as it's easy to get emotionally hooked with tenants.
Invest in landlord-friendly states – In states that don't safeguard landlords, there may be instances in which you can't collect rent.
Plug into a support team. There's much more to building to rent than meets the eye – credit readings, criminal background checks, verifying income, pulling building permits and building inspections.
Choose a vetted build-to-rent company – Make sure you invest in a company with a profitable track record that has built at least 1,000 properties and survived down cycles.
Keep learning even after you've invested your money.
BONUS: Involve your family in your investments. Teach your kids about intelligent investing.