We all agree that one of the main goals of real estate investing is passive income, and you can only generate that through owning rental properties. Rental properties can generate multiple income streams. But, assuming you don’t have the leverage to buy a multi-million dollar apartment community, how do you know if a house will make a good rental property? I have a few simple guidelines that let me know.
- The Affordability Guideline
- The 1% Rule
- The Appreciation Guideline
- The Market Appropriateness Guideline
In this post, I’ll go over each of these guidelines and then show you how we applied them to two of our current projects. Continue reading