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Yes. Passive income can initially take work to build the income source. Most people consider rent to be passive income, yet people don't just magically own hous
by evanjonr 4y ago
Yes. Passive income can initially take work to build the income source. Most people consider rent to be passive income, yet people don't just magically own houses, they more often than not work to buy them.
- _tom_ 4y agoAnyone that thinks renting houses is passive income has never done it. Repairs, collections, advertising, evictions, etc.
- Shugarl 4y ago...which are things you do every now and then, unlike a job, where you have to be there 5/7 days for a number of hours ?
- vidarh 4y agoBut all of this is something you can contract out to an agency for a cut of the rent.
- sokoloff 4y agoThat cut of the rent ends up being around all of the cash flow for a newly bought property, and in many markets ends up being more than the initial cash flow. It’s a second job with irregular on-call.
- vidarh 4y agoWell, then you've leveraged too highly. Estate agents here take a fairly small percentage of the rent to manage all of this, so it takes a fairly small deposit before your rental income less management fees can't cover the remaining mortgage.
- skywal_l 4y agoPeople do magically own houses. It's called inheritance.
- sokoloff 4y agoDo you think houses are most commonly inherited or worked for?