My dad says rental properties are the best way to passive income. What does Benjamin Z Miller think?

Good question.

Rental properties like single family homes with one tenant in them are not truly passive income. They take a lot of time to manage or even if you have a property manager, they still take time to manage and thus are not suitable as passive income.

If you are a limited partner in a large multifamily apartment community that is true passive income. The most direct path to passive income is to purchase corporate income bonds in privately held companies or to invest into limited partnership with experienced general partners.

But don’t buy rental properties (homes) with tenants living in them thinking that is a good way to generate passive income. It will generate some pseudo passive income but not high quality passive income.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com