![](https://rocketrealtytx.com/blog/wp-content/uploads/2019/10/Light-Pink-Valentines-Social-Media-Graphic.png)
Rental properties are a high investment class for those considering passive income. These are regarded as passive income as one has the option to continue full-time employment while managing these assets with a minimal time commitment.
What is the investment model?
Consider purchasing a single-family residential at $200K with a 25% downpayment; the monthly P.I.T.I. will be $1255(principal, interest, tax, and insurance) $1255, assuming 4.25% on a 30-year note with an annual property tax of $5000 and insurance of $1200. Assuming rental/mo to be $1700, one generates an income of $455/mo.
What are the expenses? What would be the vacancy? What about asses appreciation? What kind of insurance? What is the tax advantage? What kind of properties to invest? What are the locations? What if the cash flow is negative? How much time does it take to manage the property? Do I have to set up an L.L.C. to purchase a rental property? What kind of insurance do I need?
I will address these and other questions in next week’s blog.
If you are in the market to buy or sell, contact Poogle (972)4087402, an experienced and knowledgeable REALTOR(R).