In 5 months I will be mortgage free, and my condo is worth around $300K. I would like to live off passive income so that I can use my free time to work on my projects. My lifestyle is pretty frugal, I spend on average $12-15K a year, and no more than $20K.
I have thought of buying a town house for $250,000 and renting out my condo, which after maintenance fees, property taxes and mortgage would give me a profit of $200-$300, or around $2000-$3600 a year..Definitely can't live off that. I could also try renting out the town house, but I would prefer the extra room as my condo is too small for my needs.
I could also sell my condo for $300,000, and buy a townhouse for $250,000, and use my line of credit ($170,000) + $50,000 for generating passive income. However bank interest rates would probably negate any passive income in the long run.
A third option is to buy 1-2 pieces of real estate, flip, and sell, and then I wouldn't have to work the remaining year.
Any ideas?
Much appreciated.
I have thought of buying a town house for $250,000 and renting out my condo, which after maintenance fees, property taxes and mortgage would give me a profit of $200-$300, or around $2000-$3600 a year..Definitely can't live off that. I could also try renting out the town house, but I would prefer the extra room as my condo is too small for my needs.
I could also sell my condo for $300,000, and buy a townhouse for $250,000, and use my line of credit ($170,000) + $50,000 for generating passive income. However bank interest rates would probably negate any passive income in the long run.
A third option is to buy 1-2 pieces of real estate, flip, and sell, and then I wouldn't have to work the remaining year.
Any ideas?
Much appreciated.