People are often attracted to the dream of being a real estate investor in pursuit of passive income. This is income you don't have to work for at all. This income represents the freedom to do what you want with your life. While it's true these properties mean freedom, it isn't true that you don't have to pay any attention to them at all.
People follow the dream of passive income because they believe they are not going to have to work at all for it. This of course, is nonsense. Everything worth while requires a little bit of work.
For example, can you bulging muscles without exercising? Not without some seriously good genes! Well, real estate investing is similar. You have to put in a little work to get a big reward.
With one of our first properties, we worked hard to find and buy a property, turned it over to a property manager, and thought we'd never had to pay attention to it again.
We didn't realize then this is a formula for disaster. We learned this very quickly though when our newspaper referred to us as the owners of a local 'crack house'. The court even fined us for code violations.Now we talk to our property managers and discuss what money needs to go back into the house to prevent this from happening again. We have had no more problems since then.
This doesn't take that long, maybe about five hours a month at the most. It's such a small amount of time to not be passive, why shouldn't you do it? No reason I can think of. What you spend in time you'll more than make up for with more profits and less headaches.
Just How Passive Should Passive Income Be?