Investing in multifamily properties is great but can you generate passive income from them every month? The answer to this question is yes!
The key to success with creating passive income by investing in multifamily properties is determining what your financial freedom number is. For most people, their financial freedom number will be earning $10,000 per month in passive income.
By earning $10,000 per month in passive income, this will give the average investor the money that they need to cover their financial expenses every month and accomplish their goal of achieving financial freedom.
How Do You Accomplish The Goal Of Earning $10,000 Per Month By Investing In Multifamily Properties?
Okay, let’s say that your initial goal is to earn $10,000 per month in passive income but the big question is how do you accomplish that goal?
As a real estate investor, a practical way to accomplish this goal is to earn $100 per unit.
Let’s say that you invest in a 25-unit apartment complex; if each unit is accomplishing the goal of earning $100 profit per month, that 25 unit apartment complex is going to earn you $2,500 per month in passive income.
$2,500 per month in passive income is not going to help you reach your $10,000 per month goal so instead of purchasing 25 units, you’re going to need 100 units to accomplish the goal of earning $10,000 per month in passive income.
If the task of investing in 100 units seems daunting because you don’t have the down payment needed to invest in that many units yourself, you may want to consider taking on a partner to help you with accomplishing this goal.
Just remember that once you start adding more units to your portfolio, you shouldn’t hesitate to hire a property management company to manage those units for you.
Being a DIY property manager is only going to go so far because you’re ultimately going to spend more time and effort managing those properties yourself rather than growing your portfolio of investment properties so it’s best to hire a property management company from the very beginning.
Hidden Ways To Earn More Passive Income From Your Properties
It doesn’t matter how old or how young you are, every investor wants to earn passive income from their investment portfolio regardless if it’s real estate, stocks, dividend stocks, or a real estate investment trust.
When it comes to multifamily properties, as I’ve mentioned in this article, you can accomplish your goal of earning $10,000 per month in passive income from your portfolio of investment properties if you focus on adding at least 100 units to your portfolio that are earning you $100 in profit every month.
While you are on the road to accomplishing your goal of earning $10,000 per month in passive income from your multifamily properties, there are some other things that you can do to boost your monthly income including the following.
Add a laundry facility – Unless your tenants have washers and dryers in their rental units, you should consider adding an on-site laundry facility to your multifamily property.
This is an important Improvement to consider because your tenants are going to have to do their laundry somewhere so why shouldn’t you be earning the money that they would be paying to an off-site laundromat by offering them the flexibility and convenience of being able to do their laundry on-site?
Add an onsite storage facility – In the 2020’s, most people sometimes have two of everything, and need to have a storage facility to store their overflow items. You can earn another consistent passive income stream by adding a storage facility to your property so that your tenants can store their overflow items on site instead of somewhere else in town.
Add vending machines – Vending machines are not the ‘sexiest’ upgrade to a multi-family property but they certainly are the most practical.
Vending machines are seen as an essential service in 2020 because they help the average person to purchase the food and beverages that they need without having to physically interact with another person and potentially spread viruses.
You can easily earn another passive income stream from your vending machines every month, especially if you own those vending machines outright and don’t have to pay another company to lease them.
Add Premium Parking – Another great way to earn passive income from your multifamily property is to add premium parking spaces. This is time-tested way to generate revenue because the average person who has a car likes to have the ability to park closer to their unit and will be open to paying a fee every month for those parking spaces.
Add à la carte Services – Last, of all, another excellent way to earn passive income from your multifamily property is to offer your tenants alicarte services. This means offering them services for doing everyday things that they may not want to do themselves like housekeeping, laundry, dry cleaning, and trash pickup.
These are a few ideas that you can use to generate additional passive income streams from your multifamily property.
Remember, your goal with investing in multifamily properties should be to hire a property management company immediately. This is important because a property manager will take all of the day-to-day responsibilities off your shoulders and make managing your properties easier.
Contact Trier Capital
Multifamily real estate has the best risk-adjusted return of any real estate asset class, stocks, bonds, and REITs for the past 20 years.
With the stock market heading to another collapse, it makes sense to invest in multifamily now so that you can protect your net worth by investing in real estate.
Thankfully, our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
To learn more about the services that we can offer you, contact us today by calling (630) 229-2383 or click here.