Income Leverage Passive

Income leverage passive: One advantage of investing in rental property is leverage. Leverage is a common term in real estate. You can use leverage to buy properties. The banks allow you to take loans to buy properties. If you buy a property worth $200,000, you don’t need to pay full amount. You can pay $20,000 as down payment, and apply for a $180,000 loan from the bank.

By using leverage, you manage to buy a $200,000 property by using only $20,000. This is the advantage of investing in property.

Some properties even do not require down payment (it’s called zero down or nothing down), you can have a 100% mortgage on your property. You don’t have to spend a single cent to buy the property.

Another leverage you get from passive income is time. When you have created incomes which do not require your presence, you will have the leverage of time to create other profitable passive income.