airbnb investment

How I made $11,604 As An Airbnb Host In 5 Months

This is part 2 of my Airbnb investment experience, start by reading part 1 of my Airbnb experience series.

 

5 months ago I launched the Airbnb investment experience. It was completely last minute random decision, I made during the ending phase of renovations for house number 3. I stumbled upon the Airbnb investment model last year traveling back home to Detroit to visit family. I decided to join the sharing economy, and turn my rental property into an Airbnb vacation rental as an experiment to see if I could make more money then I would as a tradition rental. I wanted to know…

  • Do Airbnb host make money?
  • What kind of occupancy rates would I get?
  • Can you make more money as an Airbnb host, than a traditional landlord?
  • How much do Airbnb host make?
  • How hard is it to be an Airbnb host?

 

My Airbnb occupancy rate as an Airbnb host

The biggest deterrent about becoming an Airbnb host was a bad occupancy rate. The thought of letting a rental sit on the market not earning a dime concerned me, but thinking about investing in decor and furnishing on top of that, down right scared the crap out of me. Luckily, these fears weren’t necessary.

I want to be completely transparent with this occupancy rate, so its important to note, I also listed my property with Airbnb competitors such as Vrbo and Flipkey. This is something I recommend doing, to ensure the best occupancy rates.

Over the course of the 5 months following my initial launch, I found that on average my home was booked approximately 22 night per month. I’ve had a slow month here and there my slowest month was in August I only booked 15 night(Ouch!) but there have been months I have booked 29+ nights, so it tends to vary per month.

I would say approximately a 75% occupancy rate, I find the majority of my bookings are reserved in the current month, which initially freaked me out a litte, popular months do fill up further in advance, my home is in Clearwater, FL so, our winter season, attracts alot of snow birds, and people who just want to escape the harsh northern winters. As you can see in my airbnb calendar below, I was able to book 28 nights for December. I find people book longer stays in the winter months. As you can see I also had a significant amount of days coming from vrbo as well.

airbnb host occupancy

airbnb host occupancy




How much did I make as an Airbnb host?

I have a few answers here as an Airbnb host exclusively I grossed $7404, this was Airbnb bookings only.

airbnb pay out

From Vrbo and Flipkey I earned a combined $4200 gross. So all together in 5 months I grossed $11,604…Woohoo! Let’s break this down.

Lets talk about the expenses, obviously to have a vacation rental, you will have to have the utilities cut on and pay bills. Being the frugal guy I am I want to mention that while renovating this house I had all the lighting converted to LED, for one I like the look of LED Lights, and it saves a lot of money on electric bills. I do this to all my rental properties now, because this is a benefit to my tenants, but its even more beneficial for my vacation rentals to keep the electric bills low.

airbnb nest thermostat

Also I think its important to note that I live in Florida, so the AC is almost always on. My Electric bill has never been more than $130. Having a Nest thermostat is very helpful with this, so I can make sure the air is off when guest check out, and turned so the house is boiling when guest arrive.

 

The water Bill never really changes. This is a 1 bathroom home, so the water bill averages $80 a month

Cable, while its not a necessity for your Airbnb rental, I know this is a must when I travel, and everybody needs wifi, so bright house cable charges me $130 a month, this covers cable, wifi internet, and home phone service!

These numbers fluctuate a little bit depending on the amount of bookings, but only by a minor amount. That being said, my bills average around $350ish a month, so in 5 months generated approximately $1,750 in bills.




As an Airbnb host you must also consider house keeping cost. My wife and I currently do the house keeping, our Airbnb  cleaning fee is $60, which is what we pay ourselves for cleaning. Yes we pay ourselves, I do this for a few reasons, one because this is separate work, and is time-consuming(turnovers take 2-3 hours) and eventually I plan to outsource the cleaning aspect to make Airbnb hosting closer to passive income, and I want to already be in the habit of separating my cleaning fee, instead of pocketing it and calling it income. In 5 months we hosted 37 guest, which amounted to $2,220 in cleaning fees.

Now that we have the numbers lets do the math $11,604 – $1,750 in bills – $2,220 = $7634 net profit. Score!

Breaking this down even further if we divide this by the 5 months, we made an average of $1526.80 per month off this rental property. This home would normally rent for $800 per month in this area. This is almost double 🙂

How hard is it to be an Airbnb host?

I guess the answer to this question is debatable. The best answer I can give is it depends on the guest. The majority of people who book my home are absolutely the most considerate group of people I have ever met. But there’s a small percentage of guest that are less favorable than others. I’ve had guest need me to come over to show them how to work the television, or help them “get the cable working”. I’ve had guest request appliances.

airbnb after math

The aftermath of guest that came in town for a wedding

I’ve had guest leave huge messes, although that is a rare occasion. I mention these things because I think its important to keep them in mind.  Having a good deposit amount will provide a decent safety net should you guest, get drunk and accidently punch a hole in your wall.

To be honest, most guest don’t want to ruin your house they just want to have a little fun, to the right is the extent of the mess, I normally have to deal with. I usually come into empty champagne bottles, and beer bottles, its not really a big deal to clean.

Occasionally, a guest stain the carpet, but I find resolve gets out most stains pretty fast!

Here are few tips to help make Airbnb hosting a little easier.

 

 

Other things to consider as an Airbnb host.

A few other observations I have made in my time as an Airbnb host are my initial investment in furnishing the property. I spent $2,000 total on decor and furnishing. I remember cringing spending this money when I first started out. The extra $700+ I averaged per month covered this cost in under 3 months.

Most of the Airbnb  guest fit into 1 of 3 categories.

  1. Family Vacationer – These people are coming in large groups, usually with children. They are in town to do family oriented activities. They usually leave your house in good condition but the leave some minor messes
  2. Business Travelers – These are mt favorite travelers, they come to town for business related matters. They spend the majority of the day, away from the home and return tired and just want to relax. Because they spend so much time away, the house is very usually very clean when they checkout.
  3. BFF Vacationers – These are the best friends who plan trips together, sometimes they come into town for an event or just to explore the city. Either way they generally leave the biggest mess. I often come to find large amounts empty liquor bottles, and unwashed dishes.

I spent $2,000 total on decor and furnishing. I remember cringing spending this money when I first started out. The extra $700+ I averaged per month covered this cost in under 3 months.

Whats Next?

I plan to eventually expand my Airbnb business. I’m hoping to buy more properties with the purpose of renting them out on Airbnb. I also am highly considering remodeling house #1 into an Airbnb rental, but I want to see how this first house works out before I go to crazy with the expansion.

-Will the market get over saturated?

So far the Airbnb investment experience has been equally pleasant and profitable.

All in all so far I LOVE being an Airbnb host. Because I generally earn close to double the amount of income, I will be able to pay house #3 off earlier than I originally anticipated. I am considering purchasing additional properties to list with Airbnb, even though its by no means passive income, it’s proving to be extremely profitable side hustle. Are you considering becoming an Airbnb host? Click here to earn an EXTRA $50 for hosting your first guest. Do you already a seasoned Airbnb host? How do you feel about Airbnb? Let me know in the comments below?

 

Amazon is hiring

Amazon Seasonal Work From Home Program

In the spirit of side hustles, seasonal work, that you can do from home is rare to come by. For this reason I’m happy to share with you that Amazon is hiring on a seasonal basis.  Amazon is looking for people to help answer customer questions and assist with problem solving issues. Its a great way to stack up your cash for investments, pay off your credit card debt, or just save up for the holidays. Scheduling is very flexible.

Amazon requires that you live in on of the following states to be eligible for its work from home program:

  • Arizona
  • Colorado
  • Deleware
  • Florida
  • Georgia
  • Kansas
  • Kentucky
  • Michigan
  • Minnesota
  • North Carolina
  • North Dakota
  • Ohio
  • Oregon
  • Pennsylvania
  • South Carolina
  • Tennesee
  • Washington
  • West Virginia
  • Wisconsin
  • Virginia

amazon work from homeBenefits of  Working Seasonally from Home

  • While your friends are shoveling snow and scraping ice from their windshield you can start work in your pajamas with
    a hot cup of cocoa
  • You set your own schedule. Work as much or as little as you like. This means you can work anywhere between 1-30 hours per week. On average most associates work about 12 hours per week.
  • Amazon will pay you $10 an hour




 What Are Amazon Qualifications?

From Amazons officials job description:

The ideal seasonal work from home Amazonian is internet savvy and gas technical aptitude when it comes to online tools and research. You will think outside the box, solve problems, answers questions, and resolve concerns presented by our Amazon customers. Our customers contact us primarily by phone and we hope you can help us deliver customer obsessed results.

Other requirements for Amazons work at home position:

  • High School Diploma or GED.
  • Basic Typing
  • Ability to navigate the internet
  • 1 year in service environment
  • Ability to take any shift sunday through Saturday from 3am to 12 midnight PST. During the holiday season its possible they may ask you to work extra hours.
  • Technology Requirements

    • 64-bit Operating System
    • 10 mbps download and 5 mbps upload speed or faster from a reliable provider(no satellite or wireless internet)
    • Must be directly connected to router/modem via Ethernet cable
    • If you are using a laptop, it must be connected to an external monitor, keyboard, and mouse
    • Windows 8.1, Windows 10, or OSX 10.9, 10.10, 10.11
    • Operating System Auto-Update
    • Windows Defender (If using Windows 8.1 or Windows 10)

    The following programs must be uninstalled to meet the computer requirements:

    • All 3rd Party Anti-virus programs such as McAfee, Norton, AVG, Kaspersky, Avast, Comcast Constant Guard
    • Any other previous work from home software should also be uninstalled
    • Unused versions of Cisco AnyConnect Mobility Client

If you are interested in applying to Amazons work from home program click here. If you want to explore some other side hustles click here.



Have you ever worked for Amazon? Share your experiences below!

DIY Credit Repair

When I was 17, for some strange reason I was approved by a local apartment complex to rent a 1 bedroom apartment. My first shot at adulthood, I was moving in with my girlfriend. I had an unreliable job, no financial education, and was still figuring life out.  In hindsight that was a train wreck waiting to happen, but it was learning experience. After a few months I was laid off from my job, lost the apartment, and had utility bills that had no chance of getting paid. Unfortunately while we are young, is when we do the most damage to our credit, as we incur bills and student loans that can effect our credit.  As maturity sets in, and we realize how useful credit can be, and thus we embark on the journey to credit repair.

Why do we need good credit?

Credit is your financial responsibility track record, its how companies determine whether your business is a liability to them. People with better credit get better opportunities, better rates, and more financial options.  Your credit determines how much your insurance premium is, if you can rent that nice apartment that you’ve had your eye on, the car you can afford, and if you ever have plans to buy your own home, or start investing you will need to get your credit in decent shape. Your credit is even the determining factor. People with bad credit are looked at as risky and unreliable. Fortunately we can redeem ourselves, here are some DIY credit repair tips!



DIY CREDIT REPAIR TIPS

  1. Know Your Credit Score – Because how would you know what needs fixing without taking a look under the hood right. Fortunately, obtaining your credit score these days is easy as its ever been. Head over to CreditKarma.com sign up and get direct access to your credit info. Credit Karma is great because its FREE. After you sign up download the app, to your cell phone. You CARE about your credit now, lets keep it close
  2. Fix Errors – Now that we have access to our report, checking the collections for errors is important. Sometimes creditors make mistakes at your expense, and its up to you to find out. These need to be disputed right away. You can dispute errors directly though credit karma.
  3. Dispute Everything – Disputing derogatory credit remarks on your report is easy and doesn’t cost any money so, it makes since to try them all and see what sticks. When you dispute derrogatory credit marks, the creditor has to prove that you owe them money within 30 days. When your late payment goes in to collections, if you haven’t paid in a while, the original creditor sells your debt to a debt collection company. This company tries then tries to collect the debt from you, if you don’t pay them, eventually they liquidate your account to another debt collector, and the process repeats. Alot of times after a few debt transfers, it makes it difficult for the new creditors to get the necessary info to respond to your dispute. The result is one less negative mark on your credit report.
  4. Don’t Pay Old Debts – Debt falls of your credit report after 7 years, anything over 5 year or older you may just want to wait out. There’s no sense in spending money that could be applied to more recent debt. Anything less than 5 years, you should consider paying off. Depending on the amount owed, set aside a reasonable amount to pay off your debts on a consistent basis. Here is a debt repayment calculator!
  5. Pay Bills On Time – Your not the same irresponsible 19 year old with your first visa any more, time to pay your bills when or before the due date. Part of your credit report is how well you are able to pay your debts on time. Each month credit bureaus document weather you paid on time or not. By making sure that you stay on top of this you will notice a rise in your credit. If you have a problem with time management, set alerts on your phone.
  6. Get A Secured Credit Card – Secured credit cards are like regular credit cards with a major exception. You will need to put a deposit down, usually a minimum of $200, which represents your credit limit. Technically is more like a debit card, but should be treated as a regular credit card. This card SHOULD NOT be used for anything other than a credit boosting tool, not because you need an outfit to wear to the club. I recommend paying for something low like a cell phone bill, or something that you need to pay for consistently  with your secured card. Don’t exceed 30% of your credit limit, and pay this balance of every month, and your score will definitely rise.
  7. Never Exceed 30% Credit Utilization – This is one of the high ranking credit factors, and a very important part of DIY credit repair. Creditors don’t like when you max out your credit cars. A good rule of thumb is not to exceed 30%. This is the perfect range to be in. It shows creditors, that you are responsible, and that you are conscious of your spending.
  8. Maintain Credit Activity – Another high ranking factor in credit repair, is the length of your credit history. You want to keep cards open as long as possible. A halt in utilization for extended periods of time can get your card closed. Always charge at least one thing to each card every month, and pay off the balances when possible.
  9. Negotiate – When you get ready to start paying off recent debt, reach out to the debt collection companies and negotiate a deal. The older your debt gets, the more flexibility you have. Let creditors know that you want to pay off your debt and offer them 30% of the debt. Sometimes they will say yes, if not almost all the time they will give you a counter offer. Try to get the lowest amount possible. When your offer is accepted, make sure to confirm that they will be removing the marks from your credit report as this is not automatic. Get all of this in writing, and store it in a safe place.
  10. Avoid Excessive Credit Checks – STOP LETTING PEOPLE RUN YOUR CREDIT!!!! Salesmen, will often downplay the effects of inquiries but the truth is they don’t care. You need to be firm with people who wish to run your credit. Excessive inquires look bad on your credit report and reduce your score. Only allow credit checks with absolutely necessary.




Things Credit Repair Will Help You Achieve

  • Able to qualify for a mortgage. Unless you are exceptionally financially well off, you are going to want to finance your home. People with good credit have no problems getting qualified for mortgages.
  • Able to finance rental properties. Thinking about investing to earn yourself some passive income?. Good credit will help you to get loans on these properties.
  • Get approved for credit cards. No surprise that credit card companies are going to do a credit check before they trust you with any credit.
  • Lease an apartment. As a landlord I can tell your credit is a major clue about your financial habits. Most landlords like to see that you can be trusted to pay your debts on time.
  • Able to finance a car. You gotta get around right? An obviously something reliable. If you want to rent a car and your credit is bad, the salesmen will politely ask you to come back when your a little more fiscally responsible.
  • Get you lower interest rates. Ever seen one of those car commercials, where they give a low monthly price and then at the bottom of the screen you see the fine print? That fine print says that those super low prices you just saw only apply to those with preferred credit. Lower interest rates means you save more money then those with bad credit.
  • Give you higher limits. When applying for credit cards, your limits are determined by your credit score. Higher credit results in higher limits. When credit card companies issue credit cars, they know if your responsible with money when they see your credit score.

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what is passive income

I was lucky, I don’t know why, but for some reason I picked up on the concept of passive income at an early age. At 9 years old I used to consistently beat my parents at Monopoly. At 9, I was just happy to be better at something then the grown ups, but I was subtle learning an important lesson. Id giggle as each time they landed on one of my properties I was slowly taking their money one faux hundred dollar bill at a time, and my pile of money would grow strong until the game ended. Today I know this, was a rough concept of generating passive income.

What Is Passive Income?

Passive income is payment you recieve on a consistent basis, with very little to effort required to maintain it. Contrary to active income, in which you trade your time for money, passive, or residual income is created generally by investing in assets, or putting in a lot of time up front that produce a monthly income.



Why is passive income important?

Passive income is important because, it is not directly related to the time that you spend. You make educated investments that create a steady income stream. Because you are not spending time, passive income investments are a good way to plan for retirement. By gaining more and more income producing assets, you are in direct control of growing your wealth.

Some Passive Income Examples:

I have dabbled in a few of these, but I’ve been able to create the majority of my income with rental properties, as you recall with house #1 and house #3. Rental properties have allowed me to achieve financial independence, and I am currently growing this business.  I am a big believer in diversification, I’ve always been an advocate of diversification, and no one way is better than the other. I recommend that people experiment on a small scale to see which methods interest you the most

Passive income is not FREE money. All forms of passive income require the following:

  • An initial financial investment – An examples of up front financial investments would be purchasing dividend producing stocks.
  • An initial time investment – An example of up front time investment would be. Creating a hit song and receiving residuals, or royalties on a monthly basis.

What Makes Passive income so powerful?

What makes passive income so attractive, is that once you lay a foundation, the residual income get easier build. With traditional active income there is a limit to how much time you can dedicate to working. With 24 hours in day and a general work shift being 8 hours of your day, it’s virtually impossible to find time for more then a second job, not to mention how brutal of a lifestyle that is. With passive income, you are not bound by the time restraint, and letting your money work for you. As long as you are generating enough income you can create as many passive income streams as you like.

The best thing about passive income, is when you don’t have to be at work, you get to actually live life. The majority of us are stuck in a position, where we need to work to keep things in order in our life. Jobs determine: when you go to sleep, when you wake up, what you eat, how you dress, and what you drive. Passive income allows you to spend your days doing what’s most important.



How To  Generate Passive Income In The Beginning?

  • In the beginning you need active income – Unless you come from a wealthy family, you will need capital to build your passive income empire. Theres no way to shortcut this part, you need to have a primary means of income to get started.
  • Be Frugal – Think of this as the time of sacrifice, this may seem unreasonable but, stop spending so much money. Try to find economic ways of entertaining yourself. Cut down on food budgets, try not to eat out too much and cook at home. Here are some yummy ideas of what frugal people eat! 
  • Create a plan. A big part of creating passive income is having a strategy. Have answers and procedures for every conceivable scenario.
  • Determine how much passive income you need – Figure out how much residual income you need to make to live your life comfortably.
  • Set realistic short term financial goals – It’s ALWAYS great to shoot for the stars, however creating short term goals that can be reasonably achieved. An example of a good short term goal is saving up for a down payment on a rental property,

Achieving financial freedom is not easy to achieve, but by setting goals, saving, and frugal living you can begin on your journey to residual income. After laying this foundation, by the time you are generating enough income to live off of, you will have definitely earned it.

UberEats Promo code 2016

UberEATS Promo Code For 2016

If you are new to my blog allow me to introduce myself my name is Dave.

I’m 32 years old and gearing up for retirement next year. 

I can do this because I have educated myself in personal finance, learned to live frugally, and I’ve made some investments, mostly real estate. You can read about how I accidently started building passive income here, and how I made $11,605 in 5 months as an Airbnb host here.

In the name of frugality, it’s common for me to post freebies and tips to help you live frugally.

If this UberEATS promo code helps you out PLEASE share this post and subscribe!

If you already know how to enter the promo code here it is:

EATS-Uber4FreePromo

Hey guys, periodically I like to post life hacks, in the name of frugality. The more money you save the more you have to invest. Today Im going to show you how to get a FREE meal using an UberEATS promo code up to $10.

Uber Free Ride promo code

And here is promo code so you can take a free ride with uber:

uber promo code

Are you new to UberEATS and want more information, or looking for a promo code? Look no further you have come to the right place.

What is UberEATS?




UberEATS originally dubbed UberFRESH, was launched in Santa Monica in August of 2014. The company took its already successful rideshare app and experimented with lunch delivery. The company has evolved into  an on-demand meal delivery service powered by the Uber app.  The app connects drivers and riders to utilizes its massive network deliver otherwise non-deliverable meals to your location in minutes. UberEATS partnered with local restaurants in selected cities from all around the world so that customers can order meals using  the UberEats smartphone app.

UberEats FREE Promo Code

UberEats Promo Code

UberEats Promo Code

To receive your free UberEATS meal, simply enter the code above into the UberEATS promo code section at sign up and you will receive one free meal credit up to $10 for your first meal! Please note the UberEATS credit will differ depending on which city you are located in. Full disclosure, any amount listed is for reference as Uber reserves the right to revoke credits.



How To Enter your UberEATS promo code to get your FREE meal

  1. Download UberEATS from the android market or app store, then open it.

    download ubereats

  2. Click the settings icon in the upper left corner as pictured.

    ubereats promo

  3. Select Promotions.

    uber-eats-promo-code

  4. Enter the promo code EATS-Uber4FreePromo, then press the apply button.  A message will pop up confirming your UberEATS free food credit Enjoy your FREE MEAL!

    free-uber-promo-code

What Cities is UberEATS Available?

Currently, UberEATS is available in the following cities:

  • Aarhus
  • Atlanta
  • Austin
  • Baltimore
  • Chicago
  • Cincinnati
  • Cleveland
  •  Columbus
  • Connecticut
  • Dallas
  • Denver
  • Edmonton
  • Houston
  • Las Vegas
  • London
  • Los Angeles
  • Melbourne
  • Mexico City
  • Miami
  • Nashville
  • New Jersey
  • New Orleans
  • New York City
  • Orange County
  • Orlando
  • Ottawa
  • Paris
  • Perth
  • Philadelphia
  • Phoenix
  • San Diego
  • San Fransisco
  • Seattle
  • St. Petersburg
  • Singapore
  • Sydney
  • Tampa Bay
  • Toronto
  • Washington D.C.Update 10/26/1 – UberEats has expanded to St. Pete from the Tampa area
Getting More Free UberEATS

Since the UberEATS promo codes are only eligible for one free ride, you might be wondering how to get more free rides. By clicking the options button in the corner and selecting ‘Free Food’, you will be shown your promo code. Every time you share your code with friends, when they use UberEATS for the first time they’ll get $10 off their order, and you get $10 off yours.

Tips on using your UberEATS Promo

  1. Spread the word about your uber promo code!
  2. Post your promo code to all your social media accounts
  3. Advertise your promo code on youtube
  4. The UberEats credit only last for 3 months, so don’t save them too long
  5. The Uber promo code terms are subject to change and are not guaranteed

How To Become an UberEats Driver

Driving for UberEATS is great because you get to set your own schedule, so it’s a good side hustle to earn extra cash. If you want to learn about my experiment driving for uber click here. To earn some extra money driving for UberEats Click here to sign up! 

The UberEATS Driver Requirements
  • UberEATS drivers must be at least 19 years  of age
  • Own a vehicle no later than 1996
  • UberEATS drivers must be able to lift up to 30 pounds
  • Have at least 1 year of driving experience

Food always taste better when it’s FREE, what are you going to order with your UberEATS promo code? Let me know what you’re snacking on in the comments below! 🙂

P.S.

Want a free uber ride credit? Click here for my Uber rider promo code.



Investing in real estate young afford everything

Investing In Real Estate Young

If I could go back in time, to my senior year of high school, with the financial knowledge I have now….I would have retired years ago. It hurts my head to think how uninformed, and uneducated the school system leaves our youth after earning your diploma. All those years chasing grades, learning formulas, and a plethora of other things, yet no talk of rental properties, building passive income, or even the financial basics. Unfortunately, this scenario is all too common. I was in my mid-20s by the time I accidentally started building passive income.

 

The average person graduates high school and college. After college they have incurred student loan debt so they get an entry level job, they rent while dating, get married then search for the dream house. The couple applies for mortgages, they purchase the dream house at the top of their budget. And the cycle begins. This is the point when you stroll up to the starting line of the rat race.

 

Your living arrangements are your biggest expense, for this reason, I recommend beginning savings for your first house right out of high school. Once you establish stable employment or hone your hustling skills, rather than renting, the best way to start investing in real estate, is to find a local duplex or a cheap single family home. In order to find a good deal, you may have to sacrifice, and consider living in a low-income area. Low income doesn’t necessarily mean dangerous, but do your research. There are benefits to each strategy.

 

The benefit to buying a cheap home is that you can pay it off fast. In my area, I can find a 2 bedroom home in a low income, but safe area around 50k. If you concentrate your income on paying this off, you can own this house in under 3 years. By paying off your primary residence, you have eliminated what is generally everyone else’s biggest expense. You now only have to cover your property taxes and insurance. This means now it’s easy for you to save, what would be rent/payments for your next investment. Imagine how fast you could save up for rental if you didn’t have to pay rent.

 

The benefits of buying a duplex as first investment slightly differ in this strategy. The idea here is to find a well-priced duplex. My criteria is that the duplex cost less than if I was buying 2 separate houses. Using the example above, if the average 2 bedroom was 60k, I would be looking at duplexes with a comparable amount of bedrooms per unit for 110k or under. Once purchased, find a good tenant to rent out one side. Make sure the rent you charge is enough to cover the mortgage as well as your bills. At this point, you have your own place, and your living rent free. Continue to save money as if you did have rent and apply this to the mortgage. If you continue this in a few years, you’re going to have the duplex paid off free and clear. Now when you receive your rent payments, they are mostly profit. You can now save up for a down payment on your next place, then replace your old side of the duplex with a new tenant. The income from having 2 new renters will be profit and you will own real estate.

 

By investing in real estate young, by the time you’ve paid off the property In either strategy, you’ve already aggressively taken a large step towards passive income and getting a clear view of the finish line that is the rat race. Once you move out and have either completely paid off and rented, you are now able to buy more rentals, or at the very least you have an asset generating enough monthly passive income to cover your new mortgage payment. Without having to worry about rent\mortgage payments you can begin a fast paced savings plan, that will allow you to grow your portfolio and subsequently, your rental income . The younger you are when you star investing in real estate, the sooner you can start building up your rental portfolio.



25 side hustles that make money

26 Side Hustles That Make Money

What’s a Side Hustle?A side hustle is something you do to earn money outside a traditional job.- Nick Loper





25 side hustlesIf you want to start building passive income the first the you’re going need is a regular income. 

I like to think of  myself as a self-sufficient hustler. Sometimes jobs are not a good fit for everyone.

Sometimes jobs don’t pay enough, and a second job would be too stressful, that’s where having a hustlers mentality comes in.

Having a side hustle is helpful to save up for larger investments that will generate passive income

Here are 25 ideas to help get some capital into your bank account.

 

 

  1. Resell discarded items – If you have a pickup truck, and you see an old sofa, or nice coffee table, out on the curb for the trash, take it. These items can be cleaned up and listed for sale on sites like craigslist or offerup, You can make money by steam cleaning old sofas, or polishing old wood dressers and selling them. A lot of times people throw stuff out thats in good condition just because they need the space. Avoid anything heavily stained and always clean these items thoroughly to restore them back to a decent condition.
  2.  Stalking Craigslist Free Section – This is one of those side hustle that is no secret to many looking to earn some money so you will need to be fast. People often list free items on Craigslist, many of which may have value, but the owner doesn’t want to go through the hassle of meeting potential buyers, or haggling so they give it away free. I’ve seen everything from furniture to vehicles in this section. The goal here is to snag items that can you can sell for profit. Because you don’t have to spend any money to get these items, everything you sell is 100% profit.
  3.  CashcrateCashcrate is a paid survey site online. Survey sites like Cashcrate generally offer 2 ways to get paid. Member sign up and can either complete surveys for designated dollar amounts, or refer others using their referral link. I signed up for cash crate a LONGGGGGG time ago. Like 2007ish, when I was trying to find out different ways to make money online. I started off doing the surveys, and I went through a phase where I was doing youtube videos and putting my referral link all over the place. I didn’t know much about internet marketing back then, but apparently, a few people are still watching my youtube videos because I have many active referrals. The good thing about cashcrate is that not only do you receive a percentage of your referrals earnings, but you also get a smaller percentage of your referrals, referrals. I consistently get checks from cashcrate to this day. It’s always a financial bonus to open the mailbox to a check from something you weren’t expecting. I would actually classify this is passive income because I literally had done nothing to maintain this for well over 8 years! If you want to sign up with cash crate click here
  4.  Bird dog houses – This is one of my favorites. Have you ever driven by a busy intersection and noticed a bandit sign with the words “We UGLY Buy Houses…”? Well, these people are probably  Bird dogging the act of finding real estate for a good price, placing it under contract, and then selling the contract for a profit. This is done by using an assignment contract. Using bandit signs is a great way to find people who want to sell their houses. The real profit to be made is when you come across homes that are in dire need of repairs, or updates because this will give you leverage to hassle. After negotiating a price you place the house under the assignment contract, this is an assignable contract to buy the house. This means two things, that you have an agreement to buy the home at a specific amount, and that you can sell this contract to someone else interested in buying that house, at the same price. This is why its important to make sure the price you negotiated will be attractive to investors after you’ve added your contract fee. In my area, I find bird doggers are usually earning around 3-5 thousand dollars per assignment.
  5.  Painting – If you’ve got attention to detail post an ad on craigslist, throw some special prices on it, buy some good quality brushes and go to work. I don’t recommend trying this if you are not particularly a neat person. Offer friends and relatives a free paint job, to  see if this is something you can do well. Always remember to tape off all trim, remove wall plates, and keep the floor covered with a good quality tarp.
  6.  Drive For Uber or UberEATS – Uber driving is a great way to make some extra money. Unless you’ve been living under a rock, you know uber is like a taxi but a heck of a lot more reliable and cheaper. I use uber all the time when I travel or go to the bar. There’s a certain freedom about not having to drive places that I love. If you have not taken a ride with uber please download it and use this promo code UBER4FreePromo, this will give you a free ride for up to $10.  Uber  an especially good way to make consistent extra money if you have an eco-friendly car. They pay drivers to download the uber partner app, and take calls from people who need rides. Its like that old arcade game Crazy Taxi but in real life.  People always ask me what its like driving for uber. It gave me a different look at my city, I got to meet a lot of really cool people, and explore areas of the city that I didn’t even know existed. Because of it, I’ve gotten paid to discover all new restaurants and other hidden gems in my city. For more info on Uber check out the uber experiment. An Expansion  of the Ubers company is UberEATS, you can also make money delivering food to customers of local restaurants. To learn more about UberEATS click here!   If you would like an Uber promo code for a free ride click here!
  7. Rent your house on AirbnbAirbnb is a website that allows you to either rent rooms in your home or your entire home to guest looking to travel in your area. This can be extremely profitable. When i first started my airbnb investment experience, I opened my rental properties to many guests in my area. This is an extremely lucrative way to make money. Click here to see how I made $11,604 in 5 months renting my house on Airbnb or  Click here to rent your home on airbnb.
  8.  Tutoring services – Do you have a talent, something that others might want to learn that you could teach, if so tutoring might be a viable source of income. Do research to see what others in your niche are charging and be competitive. Depending on what type of tutoring you’re doing. Try to go to places where people in need of your service would gather and post ads on the bulletin board. For example if your good at fitness. Advertise at local gyms. If you’re a trigonometry wiz, advertise on community college, and university bulletin boards.
  9. Start a cleaning service – If you are one of those people who finds it therapeutic to clean, start a cleaning service. Cleaning supplies are cheap, advertise on craigslist, as well as local bulletins in your community. Try to get cooperate contracts as they will make your business more valuable . Always clean very thoroughly you will be able to get more clientele through word of mouth as well if you are good at what you do.
  10.  Dog walker/pet sitter – Are you a pet lover? You can get paid as a pet sitter or dog walker. You should really love animals if you are considering working with them. You can get clientele by advertising in the online classifieds or sign up for services such as rover.com. Rover.com is a website that connects dog sitters and walkers, with people who need the services.
  11.  Mobile detailing – Because the supplies needed are very cheap, and you are mobile, you will have very low overhead with this side hustle. Advertise your services on local classifieds and bulletin boards at local businesses. Offer competitive on pricing and offer discounts for multiple vehicles. Pass out flyers in crowded parking lots at the mall. Mobile detailers generally charge $35 for a basic cleaning, and there is an upcharge for deeper cleanings.
  12.  Drop shipping – Drop shipping is when you sell/advertise  a product, and once you get a sale, you purchase that item from a 3rd party vendor and have it shipped directly to your customer. The benefit of drop shipping is there is usually little investment because you never have to purchase physical stock. In fact, the only thing you will need to make money is a website and a marketing plan. There are many companies that drop ship online, such as Doba. The best practice is to find a niche that is not over saturated. Saturated niches will be nearly impossible to get ranked for as, pioneers in that particular niche, will make it difficult for you to make any money.
  13.  Be somebody’s friend. That’s right you can literally get paid to be a friend. If your personable and you think you could lease out your services as a friend, try signing up at rentafriend.com. You can literally get paid to be a good friend.
  14.  Give advice – Do you know a lot about a lot of things? Become an “expert” on  Clarity.fm. With Clarity, you make money by giving advice to people with questions in your field of expertise. “Experts” generally make around $50 per question.
  15.  Blogging – I only recommend blogging if you love what you talk about, this is a long-term way to make money. As you build your audience, you can eventually begin to make money through a bunch of different avenues. If you use products that you truly believe in you can make money with Amazons Affiliate program. You can also make money with Google Adsense. Adsense pays you to place ads on your website or blog, and as they get impressions or clicks, Adsense registers this and issues you a payment. You can also sale ad space on your site directly. You set the price, and have more control over the details. Bloggers with large followings like Carol Tice, can earn upwards of $5000 a month from blogging. To learn how to start your own blog click here.
  16.  Collect scrap metal – If you have a pickup truck you can drive around and collect the scrap metal and scrap it. People are always listing free scraps for people to come get for free. Develop a name for yourself in the scrapping niche, you can build relationships with people that come across scrap metal frequently, like rehabbers and flippers.
  17.  Get a roommate! Ok, so disclaimer: This isn’t so much a way to make money, well I guess it could be considered depending on how you look at this. I have a friend named Amy that lives in New York, she’s financing a nice luxury apartment. Her monthly mortgage payment is $2300 and she has 4 bedrooms. She rents the 3 smaller but decent sized bedrooms out to her friends for $900 a month each. Amy grosses $2700 a month. Every month her complete mortgage payment is covered and she has $400 left over to pay bills. Of course having a room mate isn’t for everyone, but if you can bare it this is a good way to cancel out the largest part of your living expense while paying off your mortgage.
  18.  Craigslist labor section – Craigslist is a great place for find people in need of labor services. On craigslist in the section under gigs, you can find people looking for temporary help. If you are handy there will be a lot of options for you here. If you are not handy, there are also gigs where they may just need something simple, such as needing a lawn cut.
  19.  Junk removal – This is another thing that you will be able to find gigs on craigslist. Many house flippers, and , those who go through remodels, are left with literally tons of debris. If you have access to a pickup truck and preferably a trailer, you can get paid to haul this trash off to the city dump. Contact your local dump and find out what dumping fees are. Keep this number in mind when bidding jobs. always make sure that you charge enough to cover dumping fees, your gas mileage, and most importantly your time.
  20.  Bitcoin Mining – You know what bitcoin is right?…..kinda…..a teeny bit? Well, bitcoin is a cryptocurrency that has gained popularity recently and starting to be accepted as a form a currency at an increasing pace. At the time of this post 1 bitcoin is worth just a little over $500 USD. So how do you get bitcoins? Well, you can mine them  by becoming a node,  back in the day, you could mine bitcoins with nothing but your computer and an internet connection. As time progresses bitcoins become progressively harder to mine, eventually stand alone computer did not have enough processing powers to satisfy its increasing demands. The need for more power led to the birth of dedicated bitcoin miners. Bitcoin miners use ASIC technology to help  mine bitcoins, but use a lot of energy. Some investors build bitcoin mining farms, to generate large amounts of bitcoins every day. The major drawback to bitcoin mining is that it grows increasingly harder every year to generate bitcoins, so you will always need to continuously keep updating your mining equipment. In the early days of bitcoin mining, you only needed a desktop computer, and an internet connection to mine bitcoins, now dedicated equipment such as the Antminer s9 is required to keep up with the ever-evolving algorithms.
  21.  Cut grass – This is usually seasonal depending on where you live, but people will always need their grass cut. You can get a used lawn mower off craigslist for under $100 to start your business. Start off in your neighborhood, ask neighbors with noticeably long grass if they need cuts. Offer to schedule them once a month. Print flyers and pass them out to near by neighbors. Be professional and be on time, and you will make money.
  22.  Buy Return Merchandise Pallets – When companies like Walmart, Target, K-mart, and many other stores accept returns, many times the items have slight blemishes or warped packaging, these items can no longer be sold on the shelf. In turn, the big box store needs to liquidate these items to recoup as much loss as possible. These items are sold to liquidation companies in insane quantities. Companies  like Viatrading redistribute the store returns into large boxes on pallets and package for resell for one wholesale price. I used to buy these pallets when I lived in Nashville. They usually averaged $300 and came in a box that was almost as tall as me. The only thing about purchasing these returns, is the liquidation centers don’t allow you to see what’s inside the pallet, they don’t want buyers cherry picking pallets.  Once we purchased a pallet, we would empty the box, go through everything, and separate the items into price ranges. The electronics were sold on eBay, and craigslist. and the low priced items would be sold by having garage sales. We would at least double our investment on each pallet http://www.viatrading.com
  23. Storage Auction – When storage unit owners, stop paying, the storage companies need to get their space back. They do this by auctioning off the contents of the storage unit. I’ve been to a few of these and they are competitive. The key to making money here is being able to tell what things are worth really fast. Like the pallet returns, you are generally not allowed to look inside these units, you must make your decisions based on what you can see standing about 3 feet away. Sometimes you get lucky and find valuable items that were not visible. These items can be sold on craigslist, the best way to make money with this is by making sure you don’t overbid on lots.
  24. Become a virtual assistant – If you are good at administrative work, can type, and work well with spreadsheets you may want to consider freelancing as a virtual assistant. Virtual assistants perform clerical work for clients, mainly data entry related work. You can find clients by listing your services on websites like upwork.com
  25.  Amazon Flex – Ever wonder how amazon gets packages out with lightning speed? Amazon Flex workers are the backbone of this delivery system. You apply through the website, submit a background check, then once hired, you can login from your smart phone and start delivering products from the Amazon fulfillment center in your area to its customers. Flex workers average $18-$25 an hour and set their own schedule.
  26. Become a Pornstar from home – If you aren’t shy and would like to make some decent money from home. You can  make some dcent money performing as a single our duo pornstar on a cam modeling site. . While many may turn their nose up at this  unorthodox method, cam models can earn an extra $100 – $10K a month from home . These sites work off a token system, viewers come into your chat room and tip tokens, that can be later converted to cash.  Because these websites are so popular there is always a large flow of traffic and plenty of money to be made.. If you are worried about you identity you can always wear mask to cover up your face and lets your inner porno star fee. You can sign up to be a cam model as long as you are over the age of 18. To see what its like to be a porno star online you can sign up here.






the landlord commandments

The 15 Landlord Commandments

For people like me, that accidentally started building passive income. Learning the landlord game has definitely been an interesting journey. As with any career path, when your in it, you get to see a whole different side of things. I believe one of the keys to success is the ability to adapt, so as Ive continued to grow my rental portfolio there are some tips that I have learned that can help to ensure your success with rental properties, and the keep them profitable and passive as possile

  1. Thous shalt Always Screen Tenants. The first line of defense for any landlord against major headaches, and utter destruction. Screen your tenant. Take a look at a persons track record with an online background check. Being able to find a good tenant is the foundation of a strong rental business.
  2. Thou Shalt NOT Rent To People You  Don’t Know. Your friends, your cousins, your moms friends, your brother, ex girlfriends little brother who’s “cleaning up his life now”, these are the people you want to avoid as tenants. When things go left, they will ruin your investment plan.
  3. Thou Shalt Always Do A Video Walkthrough Before Lease. Self explainatory right, which damages or stains were done before then tenant moved in, become merely hersay, when both parties not video evidence is available. I always do a video walk through with the tenant present. This way when they move out, they know if theres any holes in the wall, we both they weren’t there before hand.
  4. Thou Shalt Set A Tone For The Relationship. Always be prompt, professional, and reliable with your tenants. Set a standard for the way you run your rental business. Have policies and procedures in place, and follow them. Let tenants know up front what is expected.
  5. Thou Shalt NOT Discuss Personal Matters With Tenant. This is a big part of professionalism. Some tenants can naturally be friendly, and inviting. Maintain a professional relationship, when tenants begin to think of you as a friend, it can lead to late rent payments, and request to waive late fees, and a plethora of other things, that can undermine the foundation of your rental income
  6. Thou Shalt Be Clear Whats Expected. On time rent payments, how much are late fees, these are things you  need to express . If cutting grass, and raking leaves, or snow removal are the tenants responsibility, make sure this is clear in the beginning. I make sure a tenant knows whats available by including a tenant responsibility sheet.
  7. Thou Shalt Collect Electric Payments. Come on its 2016, I really hope your not driving to pick up a check from a tenants. Always collect rent via online payment service such as Paypal, or get a deposit only bank card from your bank, this lets tenants deposit your rent payment at any local bank of your choosing. Then all you need to do is check your balance from your app. Work smarter not harder!
  8. Thou Shalt Answer Your Tenants Calls. Believe it or not I know a few landlords who actually have a callous attitude towards this. A landlord should be accessible, or atleast have a 24 hour property management company in place. The tenant may be calling you to tell you a pipe burst in the wall, you need to be able to address problems fast, the faster you handle it the faster its in the past.
  9. Thou Shalt Make Repairs Fast. If the fridge goes out or the disposal break go fix it. Remember your tenants are paying you for a fully function living space, when things break fix them fast to keep the space functional. Don’t give your tenants a reason to get upset with you.
  10. Thou Shalt Fix Things Right The First Time. This is one I learned the hard way, in the beginning, I tried to nickel and dime things, cheap $10 fixes, I learned fast that this just creates an everlasting headache. If I’m fixing the same problem for $10 10 times, I probably could have just had it done right in the first place. Im all about keeping it a passive as possible. If you are not handy, get yourself a GOOD handy man that you can call for repairs.
  11. Thou Shalt Set Aside Money For Repairs. When its time to replace the water heater, or a leak from the upstairs shower caused the ceiling to sag. This emergency fund will keep you from hurting your profitability. If you fail to plan, you plan to fail, always set aside ATLEAST $75 per month per rental. I find by saving a designated amount, and setting aside, the emotion is removed from the money. When a tenant calls with an issue, instead of thinking, “more money out the window” you think “thats fine we have money set aside for that”
  12. Thou Shalt Have A Firm Late Fee Policy, and do not defer. Make your tenant sign a copy of your late fee policy before moving in. Let them know what date rent is expected, and how much per day it will cost after that. If you let this slide tenants do not have an incentive to be on time. I need my tenants to make me a priority, the business can only run efficiently with promptness. If something breaks, I fix it fast, I expect my money with the same speed. Now if a tenant tells me they switched jobs and now get paid on a different day, I would be willing to work something out, but never be willing to accept consistent late payments.
  13. Thou Shalt Always Have Eviction Paper Work Ready To Go. Have all late notice and eviction papers ready to go. I keep a folder with these by my desk. If a tenant doest pay, the late notice is sent, which usually rectifies the issue, but if not, Im ready to follow up with the rest of the eviction paper work
  14. Thou Shalt Raise Rents Yearly. This is something I wasn’t doing. You will need to check in you area for local laws regarding raising rent but its a good idea to raise rents yearly. This is one of the reasons I enjoy investing being a landlord, they keep up with inflation. Always check what other rentals are going for in the area. As a general rule I raise my rents by $50 per lease renewal. This is about half of whats allowed in my area!
  15. Thou Shalt Recognize A Good Tenant. If you have a good tenant, know what you have. Be a good landlord, and you will keep good tenants around for many years. These people are the heart of the business, show them respect, and respect their privacy. If you have a good long term tenant that pays well and treats the property good, you will always stay profitable
how to find a good tenant

Investing is real estate in the form of rental properties can be extremely lucrative, and an excellent asset that generates income. When you talk to people about rental properties the response normally falls into one of two groups. They either love it, and are swimming around in large pools filled with coins like Scrooge McDuck, whenever they have spare time, or they hate it and have tales terrible drawn out evictions, and thousands of dollars in damages. For some reason, this is the life associated with being a landlord, which is true to an extent, but can usually be prevented if you can find a good tenant. Here are a few tips to put the odds of building wealth with real estate in your favor. If you’ve ever had to find a tenant for the first time, you might ask the following questions:

  • What’s the best way to find a good tenant?
  • How do I screen a tenant?
  • What are the characteristics of a good tenant?

When you are a landlord, you need to rent to good people.  Screening tenants for your rental property will be the key to your success. – No Nonsense Landlord

The Number 1 rule to find a good tenant

Do NOT rent to any family, friend, or anyone you have any type of relationship. This is should go without saying, and is ranked very high on the 15 Landlord commandments, if you want to find a good tenant, and goes without saying but you wouldn’t believe how many people do this. No matter how nice this person is it wont generally work well. Your tenant landlord relationship needs to be professional. This means do not make friends with your tenants. One of my tenants used to always invite me out for drinks, but I always made sure to politely and respectfully decline.

Tenant Screening.

Screen your tenants. No really really screen your tenants. Seems like common sense for anyone hoping to find a good tenant, but remember those angry investors, this is the step that was either skipped or botched, that cause them to feel this way.  The first step to find a good tenant is the pre screen. This is done when you first advertise your property. Make sure you clean before taking pictures, because clean rentals help to attract clean tenants. Post your ad, with a detailed description of the property.

Next, you will want to add the things that will be required, I always choose the following, no felony convictions within the last 5 years, no sexual crimes arrest, must have verifiable rental history of at least 3 years, and must earn 3 times the rent, and no evictions ever. Those questions for potential tenants, are my first defense to help weed out the rift raft. I find that it filters out the majority of dead beat tenants. Last I include my application fee, this is generally $50, and is used to cover the background check, this is also put in the ad, for two reasons, so they know that I will be verifying the above questions, and because no one wants to waste $50 if they know they won’t pass. As I get potential responses, I call them back give them the address, and tell them do a drive by to see if they like the area. If they are interested I meet with them, and show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee.

Now its time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as Next you will want to add the things that will be required, I always choose the following, no felony convictions within the last 5 years, no sexual crimes arrest, must have verifiable rental history of atleast 3 years, and must earn 3 times the rent, and no evictions ever. Those questions for potential tenants, are my first defense to help weed out the rift raft. I find that it filters out the majority of dead beat tenants.

Last I include my application fee, this is generally $50, and is used to cover the background check, this is also put in the ad, for two reasons, so they know that I will be verifying the above questions, and because no one wants to waste $50 if they know they won’t pass. As I get potential responses, I call them back, give them the address, and tell them to do a drive by to see if they like the area. If they are interested I meet with them to show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee. Now it’s time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as

As I get potential responses, I call them back give them the address, and tell them do a drive by to see if they like the area. If they are interested I meet with them, and show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee. Now it’s time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as Next you will want to add the things that will be required, I always choose the following, no felony convictions within the last 5 years, no sexual crimes arrest, must have verifiable rental history of at least 3 years, and must earn 3 times the rent, and no evictions ever. Those questions for potential tenants, are my first defense to help weed out the rift raft. I find that it filters out the majority of dead beat tenants. Last I include my application fee, this is generally $50, and is used to cover the background check, this is also put in the ad, for two reasons, so they know that I will be verifying the above questions, and because no one wants to waste $50 if they know they won’t pass. As I get potential responses, I call them back, give them the address, and tell them to do a drive by to see if they like the area. If they are interested I meet with them to show them the inside. If the prospective tenant wishes to proceed. I have them fill out my application, and collect the application fee. Now it’s time for the background check. Back in the day, this was tricky, but these days there are a number of tenant screening services such as rentprep, that can do a full background and credit check for a reasonable price. These checks are quite comprehensive. Within 24 hours, any lies are exposed, as I have access to their former addresses, criminal history, eviction history, bankruptcy filings, credit score, and employment information. I then cross reference this with the application for discrepencies. My personal preferences are:

  • Credit Score must be atleast 600. I feel this score means you are fairly responsible, I may sometimes go as low as 570 if everything else is in order.
  • Criminal history must be extremely mild. I don’t allow any recent felonies within the last 7 years, no drug crimes(have you seen how the DEA kicks in drug dealers doors, looks very expensive), no sexual offenders, and pretty much anything that would indicate the tenants lifestyle could end them back behind bars, because jailed tenants can’t make rent. However if the prospective tenant got into a got arrested for public intoxication during Mardi Gras 5 years ago, I would not disqualify the tenant. Things happen, but this is a judgement call.
  • No evictions ever! I don’t care if it was 20 years ago. An eviction is one of the worst, and expensive things a landlord can go through. Evictions mean the tenant would not leave and had to be escorted out by law.
  • I make sure that they really work where they claim. Tenants will sometimes get creative here and give family members numbers, and instruct them to pretend to be employing them. I call jobs and speak with the supervisor, I verify employment and length of employment, this should match what was on the application. I require them to be on the job for at least 2 years.
  • I verify previous landlords, tenants also sometimes try to use family members for this, so use discretion. When the former landlords pick up, I confirm who I’m speaking with then ask them to verify the address of the the tenant, usually landlords will know this address right away and is a good indicator. Its always a good practice to speak to the landlord before the current. Sometimes the current landlord will be anxious to get rid of a bad tenant, and give a false praise. Once confirmed, I ask how the tenant was and how the home was treated. Landlords will tell you if they were trouble makers, or if they were late on rent.

If everything checks out, I can end my search to find a good tenant, and call the prospective renter and let them know that they passed the check and give them a move in date, and request one months rent plus a security deposit equal to one months rent. By pre filtering, and then screening and verifying potential tenants in this manner, I end up with end up with a responsible person who has the makings of a good tenant. I find that tenants with clean backgrounds, and pass these verifications are not flukes, they actually care about their reputations, thus are less likely to tarnish it. Both my tenants from house #1 and my tenants in the townhouse investment property that have been screened this way have rented my homes for 3 or more years at a time, and are extremely low maintenance. By thoroughly researching to find a good tenant from the beginning, I have less hassle and can truly consider this income stream passive income.

 

Are you a rookie landlord or a seasoned veteran landlord? Any tips I might have missed here? Let me know in the comments below!

why your house is a liability

Your house is NOT an asset

Chances are you’ve heard someone at some point utter the phrase “your house is your biggest asset”. Seems legit, after all home ownership is the American Dream. But the reality is, your house is a liability, perhaps your biggest, depending on other financial  factors. When you purchase a house to live in you begin to incur inevitable expenses.

What are assets and liabilities

Before we can understand why your house is a liability, we must first learn what both assets and liabilities are. In simple terms(because simple is always better), an asset is something you buy that generates income. Things like rental properties, businesses, royalties, or affiliate  The latter, liabilities are the opposite, things like cars, clothing, electronics, boats and generally anything that cost money to maintain and/or generates expenses. These terms, and the ability to identify such are fundamental on your journey to financial freedom.

Why your house is a liability

Now that we know these terms let’s think about home ownership in all its American glory. You find the house of your dreams. You make an offer, get financing, and everything runs smoothly. Let’s look at the expenses that you are now responsible for. There the mortgage, insurance, taxes, lawn care, and repairs. All of these expenses are taking chunks of your income. In the unfortunate event you lose your job, these things will likely become unsustainable, and the home may likely end up in foreclosure.

How a house can become an asset

On the other end of the spectrum, real estate used as an asset, is one of the best ways to generate passive income . Let’s take the same example from above, however, instead of living in this house, we make it a rental property. There will still be expenses involved such as the mortgage and insurance, but by renting this out for an amount greater than the expenses, a profit margin is created. Now the rent – mortgage, insurance, and taxes = profit. That same house, that was once a liability, is now generating income rather than extracting it. Not only are you now generating a passive income, but you are also paying off the home over time. You can always convert your house to an asset from a liability by moving out and turning it into a rental, the way I did when I accidentally started building passive income. The most important thing to remember is that you always want to own more assets then liabilitie