Not every month is the same, but overall it starts to add up!
For the rental properties, I have a property manager who collects the gross income each month, pays the bills, and distributes what’s left.
The gross rent is actually a lot more, but after taxes, insurance, mortgages, repairs, utilities and saving for reserves, it ends up being much less.
Anyone who just shares their gross rental income with you is not taking into consideration the many many expenses it takes to run a successful rental business!
The net income is where you need to focus, and it can look disappointingly LOW compared to the gross income. But each month I am paying down the loans, and the property is appreciating, and so far *knock on wood* I’ve been able to pay for repairs from rental income instead of coming out of pocket.
That’s my goal, slow and steady wins the race, and investing consistently each year.
I am also house hacking, and earning rental income from my home.
The syndications are paid quarterly rather than monthly. So September happened to be a distribution month.
The syndicator sends out distributions based on % ownership (how many shares in the deal I own) and the net rental income from the last quarter.
Some syndications I am invested in are ground up construction, so there is NO cash flow yet until they are built and leased up. I try to invest in a mix of Day One cash flow deals, and some where there is no cash flow for a while until the property is fully built or renovated.
I ALWAYS invest in what’s called a “value add” deal, which means there is significant appreciation projected by increasing the net income of the property.
I explain more of that in my syndication videos, but essentially I expect to get a large amount of my investment back at the refinance.
The interest income is from a) private lending to other real estate investors, and b) my high yield savings accounts.
It’s not a huge portion of my passive income, but it doesn’t hurt! 🙂
Feel free to DM me on Instagram to learn more about real estate investing and how you can get started on FIRE too!
My Top 5 Books link is also a great place to start.
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