60 Seconds: The Step by Step Process to Secure Passive Income as an Investor

Step 1: Get a credit score 620 or higher.

Step 2: Have at least $3000 saved.

Step 3: Hire me as your realtor.

Step 4: We create your personalized real estate plan.

Step 5: In Year 1, purchase a multifamily property with 2 - 4 units. Live in one and rent out the others for income.

Step 6: Save as much as you can in Year 1 by living in one unit and renting out the other.

Step 7: In Year 2 - use the equity in Property 1 plus funds you saved as a down payment for the second property.

Step 8: In Year 4 - do it again. Use equity in property 1 to buy your third property.

In Year 1, Your should be able to save $10,000. In Year 2, You should be earning $15,000 a year in profit from your 2 properties.

By Year 5, you should be averaging $20,000 in profit per year and own 3 multifamily properties.

Disclaimer

This may sound simple BUT if you are not choosing the RIGHT properties, this method will not work. Plus, you have to understand all the ways your property can earn income.

How do you choose right? and how do you find out the way to earn income?

It is all based on your Real Estate Plan. Click HERE to schedule your consultation.

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Now for a detailed explanation:

*How did I arrive at the $20,000 a year number?

This is a cautious estimate. Some people will actually make more per year BUT I don't want to INFLATE the numbers at all.

In the above scenario, the buyer has to live in one of the units, and allow the rent from the other unit to LOWER their cost of living. For example, if you pay $1400 a month in rent-, but after buying the multifamily place, your portion of the mortgage is $300, then you need to put the $1100 you save into a savings account for ONE year.

At the end of year 1, you should have 1100 x 12 = $13,200 in the bank.

When it is time to buy Property 2, you may need to fund your own down payment. That is the purpose of your $13,200.

Right now it is 2025, so if you buy one property this year, by the end of 2026, you would be purchasing the second property. By the end of 2026, you should be earning $700 profit per property.

Why $700?

One unit in each property should pay most of the mortgage. The second unit should cover all remaining expenses and leave you with at least $700 a month in profit. That means by the end of 2027, you should have netted $16,800 in profit.

Do you see how close we are in 2 years to the $20,000 estimate? Now what?

By year 4 or 5, you should be ready for the third house. (2028 or 2029) By this point, your first property might have enough equity to fund the down payment for this 3rd property, making it more affordable for you.

By 2029, you should be making $700 profit per property ($2100 a month) This is $25,200 a year. BUT remember you will have to pay something toward taxes, so I estimate approximately 20% in taxes so that leaves you with a solid $20,000 a year going forward.

What do you do next, once you are earning $20K a year in passive income?

Well... let's talk about it. This plan focuses on a 5 year plan. You could prepare to sell one property or you could create a line of credit to further grow your investment. Or maybe you want to try out a "fix and Flip" or a co-op investment.

These are questions to explore as you get closer to the end of the 5 year plan because by that time, you will have more clarity on the path you want to take.