Acquiring cash is -not- that difficult if you are willing to put in the time. Most people just aren't willing to push through and earn the credentials to do so, or lack the business skills to succeed in lieu of credentials. And technically if one's goal is to acquire enough capital to withdraw 2k a month at a 4% withdrawal rate, 600k would be a sufficient investment sum. 600k is not an impossible number to achieve in a few years. You just need to make wealth acquisition a priority in your life and go where the money is.Hero wrote:Really? It's that easy?HouseMD wrote:Build up one million dollars in capital...
The only people I have ever known personally that lived off of passive income either built a business they later sold, then invested the money and lived on the interest, and people that had high paying jobs and poured their money into buying rental properties. The trouble with rental properties is that unless you own a decent portfolio and put 50% or so down, you won't be able to both hire a decent property management company (which you need for the investment to be truly passive) and generate positive cash flow. In my old city, property taxes alone run a mill rate of 74.29, or $1,543/mo on a 250k property. That is without a mortgage or utilities! Even in smaller towns with mill rates of around 35, you're still looking at $730/mo for a 250k property in taxes alone. Rental rates are around 1000-1200 a month for a single family home with no utilities provided, leaving you with 270-470 dollars to pay for a property management company (their cut is usually 10% of rent, but they often have a minimum portfolio size to work with you) and pay for any home repairs and your mortgage.
With this information considered the only real options are getting a high paying job and making as much income as you can while spending as little as you can, investing the money, and getting the hell out as soon as possible, or starting a successful business and selling out, which is way easier said than done. It might take 80 hour weeks for a few years on either path, but where there is a will, there is a way.