People are increasingly turning to real estate investing as a means of generating passive income and achieving financial security. How many homes must one own in order to earn $100,000 annually is a common question. The answer to this question depends on a number of variables, including the location of the property, the rental revenue, the costs, and the financing.
The co-founder of Keller Williams Realty, Gary Keller, claims that ten rental properties can produce a passive income of $100,000 annually. This sum, however, is flexible and can change based on the location of the properties and rental income. For instance, ten rental units may not be enough to provide $100,000 in passive income in a high-cost area like San Francisco.
Popular YouTuber and real estate investor Graham Stephan revealed that he has 6 rental homes that bring him over $100,000 annually through passive income. Stephan emphasizes that the cash flow and return on investment matter more than the number of properties. He advises investors to concentrate on locating homes in areas with strong rental demand and strong potential for appreciation.
Meet Kevin, a different successful YouTuber and real estate investor who has built his money through investing in the stock market, house flipping, and rental properties. He has not disclosed the precise number of properties he owns, but he stresses the value of making investments in homes with a healthy cash flow and room to grow.
For long-term financial success, it’s critical to take into account savings and investment methods in addition to passive income generation from rental properties. A 21-year-old should seek to save at least 20% of their annual salary by the age of 21, which translates to at least $8k in savings for a 21-year-old generating $40k per year.
In summary, the quantity of properties required to earn $100k year varies based on a number of variables, including location, rental revenue, expenses, and financing. This amount of passive income may be produced by owning 10 rental homes, however it’s more necessary to concentrate on cash flow and return on investment than the number of properties. Achieving financial success and freedom also requires putting long-term savings and investment strategies into practice.