How to Make $500 per Month and Live for Free
Today we’re going to get into the details with actual numbers on how you can make $500 per month and live for free by investing in real estate. Up to now, we’ve interviewed real estate investors, lenders, mortgage brokers, and other real estate professionals. We’ve studied real estate fundamentals and principals.
Our guests have shared their stories, strategies, and approach to each of their successes with us. By taking these lessons learned and combining them with the basic principles we’ve studied, you can begin to design your own blueprint to success.
This is where the rubber meets the road. This is where you don’t get trapped in what we call analysis paralysis. This is where most people get that lump in their throat, or their palms get sweaty thinking about putting things into action. Not you though. You have the knowledge and resources necessary to get started. So let’s do it.
When thinking about investing in real estate, most people want to achieve financial freedom through passive income. This can seem like a daunting task. Let’s break that goal into a first step. Let’s look at how you can make $500 per month through real estate investing while living for free.
We’ve discussed the importance of setting your goals. Your goals are the foundation to your path to success. By having clearly defined goals, you’ll be able to determine what property type and market best fit your goals.
We’ve studied how to find properties, what to look for, and resources for finding deals. We’ve also outlined how to estimate expenses.
Let’s look at a realistic example of how you can make 500 per month while living for free.
Our example property is a $330,000 fourplex. You’re going to live in one unit and rent out the other three units.
Each unit rents for $1,100 per month, for a total of $3,300 in rents.
The P&I (including private mortgage insurance) is $1,609.79
You have estimated expenses for utilities, vacancy, capital expenses, repairs & maintenance, property taxes, and insurance. You’re going to self-manage the property since you live in it.
After collecting $3,300 in rents, and paying our mortgage and expenses, while setting aside money for future expenses, we are left with $544.21.
$544.21! But it gets even better. Remember, you are living in one unit for free. This means you’re effectively saving yourself rent or a mortgage that you would have to pay otherwise. Let’s say your rent or mortgage elsewhere would be $1,000 per month.
By investing in this fourplex and living in it, you are effectively making a $1,544.21 gain every month! (You’re making $544 and saving $1,000)
Imagine the difference in your lifestyle by having an extra $1544! Now imagine if you saved this money, rather than improved your lifestyle. In a short amount of time, you could simply repeat this process and further increase your cash flow! Now we’re starting to experience the true power of real estate investing.
I’m sure there are some people who are already creating excuses for themselves by allowing limiting beliefs, or negating any facts. The truth is, you can do this. It will require some sacrifice and dedication, but it will all be worth it.