5 tips for making money in real estate from an Indiana couple bringing in $2,000 a month

It’s also the reality for Indiana couple Greg and Holly Johnson, both 40, who net an average $2,000 per month in rental income from two homes. “We plan to use our rental income as part of our retirement plan,” says Holly, who writes about personal finance on her blog, Club Thrifty. Though it hasn’t always been easy, Holly says she has learned a great deal, and she shared her best advice for anyone who is considering buying a rental property. But, as they learned when they purchased a second prop


It’s also the reality for Indiana couple Greg and Holly Johnson, both 40, who net an average $2,000 per month in rental income from two homes.
“We plan to use our rental income as part of our retirement plan,” says Holly, who writes about personal finance on her blog, Club Thrifty.
Though it hasn’t always been easy, Holly says she has learned a great deal, and she shared her best advice for anyone who is considering buying a rental property.
But, as they learned when they purchased a second prop
5 tips for making money in real estate from an Indiana couple bringing in $2,000 a month Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-23  Authors: emily glover, susan roane
Keywords: news, cnbc, companies, month, mortgage, landlords, tips, holly, johnsons, bringing, indiana, rate, making, rental, 2000, interest, property, real, estate, income, renters, money, couple


5 tips for making money in real estate from an Indiana couple bringing in $2,000 a month

Real estate is often touted as one of the most reliable investments, and the prospect of earning passive income from a tenant while a property appreciates is appealing. It’s also the reality for Indiana couple Greg and Holly Johnson, both 40, who net an average $2,000 per month in rental income from two homes. The money allowed them to pay off one home “extremely early” and double up on payments for the second house, which is on track to be paid off within five years. “We plan to use our rental income as part of our retirement plan,” says Holly, who writes about personal finance on her blog, Club Thrifty. This was all possible because they purchased their first home in their 20s with a bigger goal to become landlords. Though it hasn’t always been easy, Holly says she has learned a great deal, and she shared her best advice for anyone who is considering buying a rental property.

1. Get familiar with specific taxes and fees

The Johnsons’ first rental property was also their first home; they were allowed to purchase it with a 3% down payment and get a lower interest rate. But, as they learned when they purchased a second property intending to rent it out, they needed a more robust 20% down, and the interest rate was higher. They were also surprised to learn that property tax caps in Indiana are double for rental properties. Because Holly knew the market in her hometown, she was still confident that rental income would offset monthly expenses. However, landlords operating in areas they don’t know as well may be in for a financial loss if they can’t charge enough to cover payments.

Video by Jason Armesto

2. Communication with tenants is key

It’s fairly standard for landlords to run background and credit checks. Holly is just as interested in what she can read between the lines from these reports, though. “I mostly do this to ensure renters are being truthful on their applications,” she says. “Our longest term renters don’t have excellent credit, but they were very straightforward about it. I appreciated their honesty and we’ve had a wonderful experience with them.”

3. Expect emergency expenses at the worst times

When it comes to homeownership, expect the unexpected, they say — especially when renters are involved. “We had a renter do about $5,000 worth of damage on one of our properties several years ago,” Holly says. “We had to replace all the flooring, all the interior doors in the home, a giant window on the front of the home, and more when they moved out.” Having a separate fund with the equivalent of 3 to 6 months of rent reserved — essentially, a emergency fund for the business — allowed the Johnsons to cover the expenses without dipping into their personal bank accounts.

Video by David Fang

4. Paying off the mortgage should be a priority

The Johnsons decided to throw their profits back into their one rental that still has a mortgage. By taking an aggressive approach, they are minimizing interest payments: “This mortgage is currently on a fixed rate loan at 4.95% APR, so we’re saving approximately that amount by prepaying.” Having a fully paid mortgage also gives them a financial buffer to clean a rental or make repairs during the gap between tenants.

5. Make decisions on homes with your head, not heart


Company: cnbc, Activity: cnbc, Date: 2020-01-23  Authors: emily glover, susan roane
Keywords: news, cnbc, companies, month, mortgage, landlords, tips, holly, johnsons, bringing, indiana, rate, making, rental, 2000, interest, property, real, estate, income, renters, money, couple


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Here’s what Richard Branson’s daughter learned from interning at her dad’s company

Billionaire entrepreneur Richard Branson prides himself on passing key pieces of life and career advice down to his children. Branson’s oldest child, 36-year-old Holly, has taken those lessons and applied them to both her career and her personal life. Growing up, Holly says she watched her dad grow Virgin into the business that it is today. “We were used to people coming and going, constant phone calls, the beeps of fax machines, paper everywhere,” she writes. But even with a front-row seat to t


Billionaire entrepreneur Richard Branson prides himself on passing key pieces of life and career advice down to his children. Branson’s oldest child, 36-year-old Holly, has taken those lessons and applied them to both her career and her personal life. Growing up, Holly says she watched her dad grow Virgin into the business that it is today. “We were used to people coming and going, constant phone calls, the beeps of fax machines, paper everywhere,” she writes. But even with a front-row seat to t
Here’s what Richard Branson’s daughter learned from interning at her dad’s company Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-04-30  Authors: courtney connley, photo courtesy of getty, photo courtesy of weconomy
Keywords: news, cnbc, companies, company, richard, bransons, leaders, learned, holly, branson, heres, daughter, writes, life, coming, business, dads, going, interning, career, dad


Here's what Richard Branson's daughter learned from interning at her dad's company

Billionaire entrepreneur Richard Branson prides himself on passing key pieces of life and career advice down to his children.

Branson’s oldest child, 36-year-old Holly, has taken those lessons and applied them to both her career and her personal life. In her new book, “WEconomy,” co-authored with planthropists leaders Craig and Marc Kielburger, Branson describes the impact that business leaders like her dad have had on her search for a purposeful career.

Growing up, Holly says she watched her dad grow Virgin into the business that it is today.

“We were used to people coming and going, constant phone calls, the beeps of fax machines, paper everywhere,” she writes. “We had no idea that the people coming and going to meetings were the likes of the Rolling Stones, Janet Jackson, the boss of Boeing or a distraught bank manager (on more than one occasion).”

But even with a front-row seat to the life of one of the world’s most successful entrepreneurs, Holly set her sights on becoming a doctor.


Company: cnbc, Activity: cnbc, Date: 2018-04-30  Authors: courtney connley, photo courtesy of getty, photo courtesy of weconomy
Keywords: news, cnbc, companies, company, richard, bransons, leaders, learned, holly, branson, heres, daughter, writes, life, coming, business, dads, going, interning, career, dad


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