Know your time horizon
Rental properties can be a great source of long-term passive income. But your timing and time horizon are extremely important in making or breaking your passive income dreams. “High-quality real estate is more illiquid in nature and designed for the long term,” says Peter Brunton, chief investment officer at Strategic Wealth Partners.
You need to know or at least estimate what the demand for the property will be and how much you can recover from your invested amount in the next five or ten years, in case you need that money to cover for something else. This somehow depends on your strategy and market trends. If you’re unsure where and when to invest, consult a professional and find out all the details of buying and selling before making a decision.
