Question:
Hey guys,
I was wondering if there is a passive investing guide out there for rentals. I have not found a solid guide on BP on how to invest passively if you simply cannot make weekly or monthly trips to rentals unless in times of extreme emergencies. A few reasons might be:
1. personal preference.
2. Job requires frequent travel
3. Job requires 70-90 hrs/week
What are the most important steps to passive investing? Selecting a property management company that tries to keep costs down? A friendly realtor to lease your house when there is turn over?
Answer: If you like the idea of passive income without any tenants, termites or toilets breaking in the middle of the night, then you should think about investing in raw land. With raw land of there are no maintenance headaches and the pressure to keep the tenant happy. Plus, there is less capital involved with structuring land deals. What I like to do is acquire 5 – 40 acre parcels from a distressed owner, sell that property on a land contract and a promissory note and collect the monthly payments. In this way, I have monthly passive income, plus I don’t have to incur the expense of foreclosure should my owner fail to make their payments. Simply rinse and repeat.
