What if you could replace your salary from your 9-5 job with passive income through real estate investing? You might think this sounds like a tall order, but it’s actually quite attainable. I’ve done it, and I’ve watched other investors do it too. All you have to do is follow a simple formula, and you’ll be earning a passive income in no time!

I came up with this idea one day when my wife and I were looking at our finances. It seemed like at the end of every month, there were still bills to pay, and no paycheck left to cover it. Does this sound familiar?

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I started thinking about what we could possibly do differently, and I realized that if we wanted to be financially free, we’d have to put our money to work for us. In order to start creating cash flow and passive income, we’d have to implement an actionable plan based on tangible numbers.

And that’s why I created the Freedom Cheat Sheet. It’s a simple three-page PDF designed to help you determine how many rental properties you need to cover your monthly expenses. Determining my Freedom Number changed everything for me and my family, and I’m confident it will do the same for you.

If you want to hear more about my experience finding my Freedom Number, and how it changed my life, you can check out this episode of the podcast. 

A lot has changed since those days spent agonizing over bills. Now, I purchase single-family homes at a low price, fix them up, and fill them with reliable tenants who pay me an average of $700 per month in rent.

So, if you’re trying to replace $70,000 a year, here’s how rental real estate can help you get there:

$70,000 salary/52 weeks = $1346/week

$700 monthly rental income x 12 months = $8400 annual rental income

$70,000 salary / $8400 annual rental income = 8 rental properties

However, I like to be conservative with my numbers. In my ROI formula, I always remove 40% from my rental income to account for any potential vacancies, repairs, or expenses. I don’t want to be short at the end of the month anymore. I’d rather be pleasantly surprised with extra funds, so let’s work that into the formula.

$8400 annual rental income x .6 = $5040 per property, per year

$70,000 / $5040 = 14 rental properties.

That means in order to completely replace a $70,000 salary, all you have to do is acquire 14 rental properties. That’s a totally attainable goal, and we’d love to show you how. If you’d like to further discuss this topic, or any other investing goals with our team, click the button below to schedule a free call.