How do real estate investors earn enough money to support themselves full-time? It appears that real estate appreciation is the only method to generate significant profits, since cash flow is quite small. However, others also discuss reaching financial independence with a small number of properties. What have I overlooked? It would seem necessary to have 1000 doors in order to make a truly respectable living.
I apologize if my ignorance is apparent; I’m simply trying to grasp the broad scope of this.
For me, anyway, it’s a lengthy game. I’ve purchased homes with some cash flow—buying them was definitely simpler when interest rates were lower. Over time, equity was created, properties increased in value, and rentals rose faster than expenses. Years—I’m talking about 15 to 20 years—are needed to see a noticeable increase in wealth and income.
Real estate investors can achieve full-time income through passive and active strategies. Passive income methods include rental properties, where investors earn from tenant rents, and Real Estate Investment Trusts.