Let's say you are looking at a $400,000 duplex. If you can borrow at 4% with 25% down and collect $1500 rent for each side your net income is $36000.
This way my idea on how to get there. Purchase one $100,000 duplex and rent it out putting 25% down and pay it off as quickly as possible with extra rental income. then purchase a second one worth the same amount and use the combined income of both properties to pay it off as well then take the one duplex worth $200,000 and use all of the combined income to pay it off as well. this way i can use leverage but keep from being dangerously aggressive. does this strategy make sense?
"Rental income," "Passive," LOL that's a good one.
This is one of my major concerns. I hear that you should treat rental properties more like a business than an investment and be ready to put in a lot of time and effort. what if you use a property management company? How much will that reduce the time and effort? I expect to still have to put some time is but i dont want to get too over my head