What does it mean
To use real estate as a means of residual income means to create a source of passive income through real estate investments. It provides a monthly cash flow that will grow an income over time. Residual income is the money left over after the property expenses have been paid.
How is it done
To gain a residual income means to invest in real estate, there are many ways to do so. An individual can invest by purchasing properties with the intent to rent it out. Property options can range from single units, duplexes, apartments, commercial buildings, industrial or self storage facilities, land lots, or vacation rentals.
Real estate investments can also be done through an REIT (real estate investment trust). This investment is treated as a stock and can be traded.
Residual income is a passive income, however responsibilities are to follow. This includes property search, tenant screening, property management, housing repairs. It is important to treat real estate investing as a business or career and prepare to be a landlord if necessary. Your income relies on your tenants, be sure you are thoroughly screening, you are collecting rent on time and have a reliably management system put in place.
If successful you can create a beautiful, welcoming and safe home for others!