I am sure many have read Tim Ferris 4 hour work week. I believe it is possible that one can achieve a

 True “4-Hour” Real Estate Workweek

It takes knowledge and experience but this is the whole essence of passive real estate investing.

Active real estate income

Active Income on real estate is the proverbially, buy, refurb and sell on. We primarily focus on HMOs as they are much more lucrative than traditional buy to lets. Personally it is always a challenge to keep or sell. My JV partners seem to fall in love with many of the properties we refurbish. It is hard for them to sell on their cash flowing creations. However, I have learned however over the years to keep leverage to a minimum and thus I sell in order to keep real estate. Myself and my JV partners are constantly working and being active.

Passive real estate income

Is simply generating rents from properties we are not actively or daily involved with. In short, we did something with our money that now pays us returns for doing little to nothing. This is especially true of the Social Housing HMOs we develop in which they have a 5 year contract….no management and maintenance is covered up to 5,000 per year.

I am getting on in years…a young 54 and  to me it boils down to freedom and how much control you have of your time. I know I will not be able to keep up the hectic pace I work forever.  Going back to Tim Ferriss’s 4 Hour Work Week, passive real income is the direction to be had. Keep leverage low and look for high yielding properties such as HMOs.