Many people get started in residential real estate investing to earn passive income from their properties. But how do you create multiple streams of income using more than one residential property? In today’s episode, we invite Pip Stehlik and Monica Decker to give you their insider secrets on how to create multiple income streams in the residential market.
Pip Stehlik started working in a family-owned grocery business after finishing his MBA. He has now trained over 40,000 students in over 18 different countries on how to diversify their portfolios.
Monica Decker worked for 15 years serving her community as a mental health professional. After completing her first rehab project in 2008, she gained a passion for real estate and continues building her portfolio today. Let’s see what they have to say about some alternative ways of creating multiple income streams.
Section 8 Housing
One way to create multiple streams of income is to invest in a Section 8 housing property. These properties can guarantee government payments every month regardless of the state of the economy. During the COVID pandemic, many people have been unable to pay their rent. With this asset class, you will be guaranteed payment each month.
Assisted Living Facilities
With baby boomers and retirees getting older, the demand for assisted living facilities has increased. These facilities can provide a more reliable passive income stream than other types of properties. This is an often-overlooked asset class within residential real estate, but we think it is worth looking into at this time.
Since most tenants at an assisted living facility have already made their money, you won’t have to worry about them losing their jobs or their income.
Single-family homes will always be a great real estate investment even in times of economic downturn. Many investors, including myself, get started with a single-family home that they rent out for a profit.
During the recent COVID pandemic, many people have had to foreclose on their homes. This sets the market up for a boom in the next year or so. Many investors will be able to snatch up cheap properties to flip for a profit.
Wholesaling Real Estate
When an investor wholesales real estate, they form a contract with a seller and then find an interested party to purchase the home. The investor acts as a middle-man and sells the home to the buyer at an increased price. They get to keep the difference, which may vary from property to property.
Many real estate wholesalers work with distressed properties. Keep in mind that a wholesaler does not renovate the property as a house flipper does.
In today’s episode, we discussed alternative ways to create multiple streams of income using residential properties. We focused on Section 8 housing, assisted living facilities, single-family homes, and wholesale opportunities. If you find a good deal in one of these areas, or perhaps more than one, we recommend running the numbers and taking the opportunity.
The best way to create multiple passive income streams is to diversify your portfolio with more than one investment. For more information on how you can start investing in real estate and earn passive income, check out our comprehensive guide!