I did actually receive steady cashflow from two long-term tenants in a condo in Florida and one family plus some seasonal renters on a home in northern Michigan.
Both were places I had moved away from and held onto, but in hindsight, neither was a great setup in terms of the numbers; I just wasn’t ready to let go.
You’ve started your FIRE journey. You’re diligently building your next egg with aggressive saving and investing in tax-advantaged retirement accounts as well as taxable brokerage accounts.
The beauty of monthly cashflow, compared to money tied up in the market, is that you have the ability to use the cash if you need it and reinvest it when you don’t.
So what are some options for investing in cashflowing real estate? Here I list five options. This list isn’t exhaustive. It’s meant to give you a list of the more common options.
Investing in syndications or funds means you give your money to someone else (e.g., general partners for syndications and fund managers, respectively) to manage.
This option involves buying homes and renting them out. The homes can range from single family to large apartment complexes consisting of hundreds of units.
Investing in commercial rentals is similar to residential rentals in many ways. The cashflow can be tax-free. The properties appreciate in value if you increase the income of the property.