“What would you do if you weren't afraid?”
After my father passed away when I was very young, my mother – a teacher – dreamed to see me in a steady full-time job. Climbing the corporate ladder was the gold standard. So, when I made it to a managerial position she was thrilled, and I was too – for having made her proud.
For us 9 to 5 folks this dream, the gold standard, trains us to be risk averse. It makes us comfortable in the cycle of steady paychecks – despite marginal yearly wage growth, mortgage payments, and retirement accounts. Saving for a few weeks of vacation, cars, or some other indulgences reinforces our feeling of security, though rarely satisfies our desires. This tentativeness is generally even more pronounced in women, who are conditioned to keep their head down and be grateful for what they have. A risk averse 9 to 5 job further closes women off in a society which already puts them into a box.
Have you considered investing money into a passive rental for additional income but not sure where to start? This blog post is a peek into how I choose properties to invest in. The number one thing to remember is that picking a passive rental different than choosing a home for yourself to live in. When it comes to investing in a passive rental, it is all about numbers and not about falling in love with the property. Though the analysis is complex, I have broken my strategy down into four key components for simplicity.
Location is key in any real estate investment. For single family passive rentals, this is specifically important in finding tenants quickly and also for retaining tenants which in turn is helpful in reducing the vacancy rates. I look at these specific elements:
a. Access to public transport and expressways
Note that if public transport isn't available and expressway proximity is what you're considering, ease of parking becomes a factor as well.