Rental Property: 2018 target $5,000 passive income
Currently, we have a small duplex and a 1 bedroom condo in our rental property portfolio. The 1 bedroom condo is now rented out. Yes! It was vacant for 4 months last winter and it was very painful.
The duplex is more challenging because it is an older home and needs more repair and maintenance. I raised the rent a little in January and that will increase our rental income this year. When the duplex tenants move out, we plan to move into the house.
My plan is to eventually consolidate down to just one property. Portland real estate market is getting too expensive for me. At this point, I’d rather invest in heartland real estate through real estate crowdfunding. Being a landlord is a great way to build wealth, but I want to be a more passive investor in the future.
We’ll turn the duplex into our primary residence. The home is around 2,000 square feet so it’s really not that big. Eventually, I’d like to remodel the unfinished basement and turn it into an Airbnb unit. From what I heard, an Airbnb unit in that neighborhood could pull in $50,000+ per year. That would fund our annual cost of living and life would be easy then. We might not be able to do it in one year, but I’m sure we can accomplish it in 4-5 years.
New investors should read this – How to Start Investing in Rental Property.
YTD rental income
Now that all 3 units are occupied, the income should be much better for the rest of 2018.
|Passive Income||2016||2017||2018 YTD|
You can see all of our passive income over on the Passive Income page. I will update these passive income pages monthly.
For 2018, Joe plans to diversify his passive income by investing in US heartland real estate through RealtyShares. He has 3 rental units in Portland and he believes the local market is getting overpriced.
Joe highly recommends Personal Capital for DIY investors. He logs on to Personal Capital almost daily to check his cash flow and net worth. They have many useful tools that will help every investor analyze their portfolio and plan for retirement.
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