What this means is that you do not need to invest where you live. Because your dream home, might not be a great investment.

You can overpay for your dreamhome, but you should never overpay for an investment.

That is why “Your home is not the best investment.”

Hear what Marc Oshiro, a financial FIRE fighter, has to share in his real estate journey, living in Hawaii, where properties are expensive…

And how he successfully converted equity trapped in his house into cashflowing rental properties, in Pennsylvania, 5000 miles away…that produce passive income and appreciates at the same time.

Growing a real estate portfolio is an excellent way to provide long-term passive income and generational wealth building.

With the right knowledge, strategic planning and an understanding of key principles, it’s possible to start real estate investing and gradually expand it into a portfolio.

Today, we shall explore the 1% rule.

A property in a high-priced market like in Hong Kong, Singapore, Shanghai, San Francisco or New York easily costs $1.2 million and up, while the monthly rent is about $4,000.

The monthly rent is only 0.3% of the property’s purchase price… or 4% annual gross rental yield.

After factoring in mortgage expenses, the property will be negative cashflowing. Instead of finding an investment that pays you, you end up having to work harder just to pay for the investment.

Enter the 1% rule.

The 1% rule is a fundamental principle used by real estate investors to evaluate the potential profitability of a property.

According to this rule, the monthly rental income should be at least 1% of the property’s total acquisition cost.

For instance, if a property costs $200,000, the monthly rental income should be $2,000 or more to meet the 1% rule.

This would translate to a 12% gross rental yield.

With a higher yield, it ensures that the property generates sufficient cashflow to cover expenses such as mortgage payments, property management, and maintenance while leaving room for a positive return on investment (ROI), and generating a stream of monthly passive income.

You actually get a property that pays you month after month.

When you buy enough of such properties, you generate enough passive income to pay for your living expenses. You no longer need to rely on day job to pay your living expenses.

You are free to do anything you want.

And this is one way to achieve financial freedom!

Here are some frequently asked questions:

1. Can I, a non-US citizen take loan to invest in US real estate?
2. Can I take a loan if I do not have credit score?
3. How much capital do I need before I start investing in US real estate?
4. How to know if the property is a good deal?

You can find all these answers here!

Curious to find out more about Cashflowing Rental Properties?

Feel free to drop your questions in the comments below, or leave them on any of our social media accounts.

Hope to hear from you soon.

I am running a cohort based course – Remote Cashflow Rentals Live Online Masterclass on 27th, 28th & 29th Oct 2023 to teach how you can buy your First Cashflowing Rental Property and get paid while waiting for appreciation. Enroll here.

Why?

Because the Fed’s inflation target is 2%. And we are not there yet. There is no reason for them to drop interest rates when inflation is still relatively high.

And if the Central Banks & the Federal Reserve (Fed) make a pivot, dropping interest rates, it will be stimulative in nature, and that will stoke inflation back up again.

This was what happened in the 1970s when the Fed dropped interest rate prematurely, and inflation roared back. This forced Fed Chairman to increase interest rate closed to 20%. It plunged the economy into a recession…which eventually dropped inflation back to acceptable levels.

Furthermore, the unemployment rate is still low & wages are still increasing slowly. This allows landlords in the US to increase their rents.

Check how this landlord make use of inflation & rising interest rates to help him generate more passive income.

Watch video here!

So, where do you see interest rates going in 2024? Up, Down or Same?

What about the economy?

Leave them down in the comments below.

We love to hear your views.

PS: I am hosting a Free Webinar on 18 Oct 2023, 730PM – 10PM, to share 4 Real Estate Principles you need to know before you start investing in real estate. Sign up with this link here.

PPS: I am running a cohort based course – Remote Cashflow Rentals Live Online Masterclass on 27th, 28th & 29th Oct 2023 to teach how you can buy your First Cashflowing Rental Property and get paid while waiting for appreciation. Enroll here.

A few years later, your pay is now at $10,000, but you realize that you actually need $20,000 in order for life to become better.

It seems like retiring is so hard to achieve.

Elusive…

Why?

Watch this video here and see if you relate.

That means more pain for businesses.

Can the economy withstand such prolonged high-interest rates?

And when it can’t, there will be a number of layoffs as companies close down or right-size their budget in order to survive.

We hope never to be in such a position…but there is no guarantee.

The most defensive way is to prepare for it….prepare for the day when we lose our job.

How?

Here’s your answer.

But did you know that most gems are usually found Off-Market?

One of the best way to find off-market deals is through a wholesaler.

In this video, I will share with you what is an off-market deal, where to find them and how much in cashflow & appreciation this off-market deal gave us.

Wanna know where are the places where you can buy multiple affordable rental properties.

Have access to lending that are FIXED for 30 years.

If you like to know, watch this video here.

How?

We use the cash out refinance from one of our rentals as downpayment, and took a ~30% loan from a lender for the remaining amount to acquire 2 rental units.

Details, pictures and numbers are shared in the video! 

Find out the ONE thing you need to do in order to achieve financial independence and retire earlier! Check it out in our video below!