How To Make $30,000 More per Year With Only 3 Months of Work in Real Estate

Buying, owning, and renting real estate properties will substantially increase your yearly income. Just a small apartment in a decent part of town can bring you $10-20k per year in income. A process that can take only several months will guarantee you rental income for the rest of your life, for the rest of your children’s lives, or for as long as you choose to hold the property.

It took me approximately 3 months from the moment I identified my first rental property, to when I closed on the home, and finally, have the inside renovated and rented. Now, the property generates over $30,000 a year in rental income.

This income will continue flowing into my bank account for as long as I hold onto the property.

Here’s how I got it done:

1. Identify the property: You should be constantly browsing new home listings regularly. You should always know when a home immediately comes on the market. Create an account with Zillow or Redfin, or have your agent set you up with a mailing list. This way you can set your email preferences so that you are informed every time a home comes on the market. Tip: Look for homes that have been on the market for longer than a few weeks. These are forgotten homes, homes that have gone “stale”, and you may have the possibility of encountering a seller who is motivated, increasing your chances of getting a better deal.
2. Analyze the deal: So is it actually a good deal? Have you run the numbers? Have you decided what you will do with the property once you’ve closed on it? Have you checked rental prices in your area to get a better idea of exactly how much money you will make every month? And now that you have, does it make sense to pursue this deal?
3. Close on time: The lending process can be frustrating. Funding can be secured in as little as one month, or as long as six months (yes, I’ve heard stories like this). And funding falls through all the time. If you’ve got your pre-approval letter, you’ll have a pretty good idea that your loan will not fall through. Provide the lender with any documents as soon as you can get them. Have all your documents ready and neatly organized so that you can quickly send them and the lender can quickly review them. Some investors like to have a packet of all the standard documents that lenders ask for to make it easy for everyone.
4. Have a contractor ready to begin: As I’ve mentioned in another article, you should have a contractor ready during the inspection phase. This way, the contractor can work together with the inspector to identify issues with the home and provide you with a quick estimate for repairing each item. Notify your contractor about the closing date. Have him open up his schedule so that he can begin working immediately. Because you will have already discussed the work necessary during the inspection phase, all materials should have already been purchased and the contractor should be ready to work the day you finally have the keys to your new property.
5. Put the home on the market: Put the home on the market before work is finished on the property. It’s OK to have potential tenants come to the property while workers are still finishing up. Assuming, of course, that it is not during the demolition phase of the renovation process. Have an open house for potential tenants. This way you won’t have to schedule individual times and fill up your entire day. Set aside a few hours of the day so that everyone who is interested can see the property. It’ll save you and everyone else time.

Following these steps will assure that you get your property found and ready to be rented in just a few short months.

Of course, $30,000 is a figure I got from my own experience. Your experience might be different. Maybe it’ll be just $10,000 more in annual income for 3 months of work. Or maybe it’ll be $50,000 more in annual income for 6 months of work.

Whatever your timeline and income goals are, following these steps will assure that the process will run smoothly. You will know what you’re looking for, you will be able to send your lender the documents as soon as they request them, your contractor will begin right away (no waiting around for materials), and you can have rental agreements signed before the home is really livable.

While the process might be stressful, focus on the bigger picture. You are securing more income every month for the foreseeable future, perhaps for the rest of your life, perhaps even for your children and grandchildren. For me, 3-4 months of hard work is absolutely nothing when I am securing financial freedom and independence for myself and my family for as long as I choose to hold onto the property.