Creating Passive Income with a Real Estate Property Investment

Creating Passive Income with a Real Estate Property Investment

Creating Passive Income with a Real Estate Property Investment

Some people believe you can’t control your destiny, but the ROI you receive from a real estate property investment will help you to do just that. Real estate investing is an excellent way to create passive income that helps you build generational wealth. Interest-only DSCR loans in combination with the cutting-edge short-term rental data provided by STR Verifi, a software that provides insights into any market and any property in the country in granular detail, offer an undeniable advantage.

At mbanc, we have been helping self-made people like you finance their real estate investing journey and achieve true financial freedom for years. Here’s how to earn passive income from real estate investing.  

Creating Passive Income with a Real Estate Property Investment

The two most common ways to generate passive income with these investments are through short-term and long-term rentals. Read on to learn more about both types of investments.

Short-Term Rentals

One of the best ways to create passive income with a real estate property investment is through short-term rentals. Short-term rentals enable you to charge more on a nightly basis, so you can realize greater profits sooner. 

Essentially, with short-term rentals and vacation rentals, the goal is to buy a home, condo, or apartment in an ideal location to rent out to leisure travelers. 

“We expect 2023 to be a year of resurgence and new normals for short-term rentals. After the hit we saw in 2020 and the recovery and expansion we’ve seen occur between 2021 and now, experts agree this year is a prime opportunity to invest in short-term rentals.”Desh Weragoda, mbanc’s CTO. 

Mbanc Hack: “House hacking” is a great strategy that entails purchasing a multi-unit property, living in one unit, and renting out space. 

Long-Term Rentals

Long-term rentals are similar to short-term rentals, but the goal is to find tenants for at least 12 months. While short-term rentals enable you to realize a greater ROI faster, long-term rentals are a more secure investment with steady cash flow and equity gain. 

Mbanc Hack: Ground leases are a great strategy that requires fewer start-up costs and is often a lower-risk investment. Essentially, instead of owning a building, you own the land underneath a building and lease that land to the property’s owner. 

Key Considerations

When it comes to investing in real estate, there are two essential considerations: financing and location. Ultimately, these dictate the success or failure of your investment. 


Now, financing is always top of mind when people are considering a real estate property investment. Interest-only DSCR loans are tailor-made specifically for investors and offer a faster approval process that requires minimal paperwork. 

With these loans, you can qualify for financing with projected rental income so your rental property pays for itself. Also, for the first few years, you only pay the interest on the loan, enabling you to set up your rental before you pay the mortgage.


Identifying the ideal location requires evaluating and understanding the market. What’s the average daily rate in the market? What about the occupancy rate? How does a prospective property’s projected ROI compare to other properties in the market?

All these questions are crucial to answer to find the right property in the right market for your needs. Fortunately, with the short-term rental data powered by STR Verifi, all of this and more are available instantly.

This short-term rental calculator will enable you to qualify for financing, put the market at your mercy, and position you far ahead of the competition.  

Mistakes to Avoid with Real Estate Property Investments

While a real estate property investment is an unrivaled way to generate passive income and build substantial wealth, there are some common pitfalls to avoid. These mistakes include:

  • Failing to do your due diligence and weighing the risks involved with an investment
  • Taking on too much debt and not being able to meet your income requirements
  • Failing to account for expenses for maintenance
  • Being uncomfortable with the dynamic nature of rental income
  • Failing to adequately screen tenants
  • Choosing a property that requires more management than you can give
  • Failing to diversify your real estate portfolio

Self-Employed Mortgage Solutions for Real Estate Investing

Real estate investing can be your gateway to the kind of financial freedom the American Dream is built on. At mbanc, we are the premier lender for self-employed people interested in building generational wealth from real estate investing. We measure our success in your success. Leveraging interest-only DSCR loans with a short-term rental software like STR Verifi will make you the master of your market, wherever it may be.

To learn more about how our DSCR loans can finance the start of your short-term rental investing journey with a fast and easy approval process, apply for financing today.

Mortgage Calculator