FAQs

Frequently Asked Questions

Good question, it’s not a pooled fund. You’d be buying and owning the property directly in your name or your LLC. Each property is an individual turnkey unit, already renovated, rented out, and professionally managed. So you get the benefits of cash flow and appreciation without having to deal with any of the day-to-day management. It’s a true hands-off ownership model, but you still fully control the asset and can sell or refinance whenever you want.

We use a data-driven approach combining local market analytics, demographic trends, vacancy rates, and neighborhood-level metrics (school ratings, crime rates, job growth). We aim for properties in markets with stable or growing rents and long-term upside potential. We are very familiar with the areas we sell in as these are areas where we invest in ourselves. We own these properties ourselves first; we don’t sell you properties we haven’t owned ourselves. This allows us to know exactly what we are selling, as we wouldn’t sell you a property we wouldn’t want for our own portfolio

Professionally vetted property management companies manage all properties. We conduct background checks, reference checks, review their track record (including occupancy rates, repair response times, and tenant satisfaction), and continuously monitor their performance. Our property management partners have been used by us for our own rentals for years, so you can rest assured that your investment will be taken care of for years to come. We aim to partner with only the best of the best when it comes to property management

Absolutely Not! Eighty Percent of the investors we work with are based outside the United States. International citizens are free to own rental property in the United States. Furthermore, we will provide you with an exceptional property and management services, so you can invest hassle-free from anywhere in the world! Our competitive offerings appeal to investors at home and abroad.

Our goal is to make real estate investing accessible to folks from all backgrounds. And for this reason, our properties start at the very low entry-level price point of around $100K USD, well below the U.S. average of $430k!

The issue with many homes on the market, especially at the lower price points for entry-level homes, is that there are often numerous deferred maintenance items that are not adequately disclosed in the listings. Everything may look good on pictures, but if you dig deeper into the mechanicals and structure such as heating, AC, plumbing, attics, basements, foundation, sewer line, roofs, etc. you’ll often find many problems. Our homes are designed to be turn-key and shouldn’t require massive capital expenditures especially in the near future. While you may save a bit buying from listings online in the MLS, you might spend 10s of thousands of dollars making costly repairs shortly thereafter. Also we provide fully turnkey operations so most of our homes are already tenented and you don’t have to guess whether the house will ever be able to get rented and for how much rental income. Best part is you should start collecting checks day 1, versus buying on the market might take several months to make costly repairs and find a suitable tenant.

We rigorously screen tenants to lower default risk. In the event of non-payment, property management will pursue collection and, if necessary, initiate eviction proceedings. This is very rare, though, as most of the homes we sell may have had the tenant in the house for many years already with consistent on-time payment history,

At PassiveRents, we underwrite each property using detailed, property-level pro forma analysis. Based on current projections, investors can expect cash-on-cash returns typically ranging from 14% to 24%, depending on the property and financing structure. These returns are calculated after accounting for all operating expenses and debt service, including property management, taxes, insurance, vacancy, repairs, and capital expenditures.

In addition to monthly cash flow, investors benefit from long-term property appreciation of approximately 3% to 5% annually, along with rental income growth of roughly 2% to 4% per year. As rents increase and loans amortize, total returns generally improve over time while equity continues to build.

Each investment combines monthly cash returns, annual cash-on-cash performance, and long-term appreciation, with results varying based on purchase price, rental rates, operating costs, and financing terms.

Contact Us and we can share the specific cash flow, ROI, and return assumptions for the property you are reviewing.

The monthly property management fee is 10% of collected rent and has been factored into all calculations. Additional fees typically include one month’s rent for new-tenant placement and $250 for each annual lease renewal.

The properties are already professionally managed by a third-party company we’ve worked with for years. They’re completely independent from PassiveRents, so you wouldn’t be signing any management agreement with us. When the property is transferred to you, you’ll simply sign a standard property management contract directly with them. We don’t earn anything from property management; we just refer clients to a team we know and trust. That said, you’re absolutely free to choose your own property manager at any time, either from day one or later if you ever decide to switch.

All of our properties are operated as long-term rentals. We do not use Airbnb or short-term rental strategies. Short-term rentals come with higher volatility, more maintenance, and additional regulations. Our model focuses on predictable, stable cash flow and long-term tenant relationships, which benefits both us and our investors.

Yes, tenants are responsible for their own water, electricity, snow removal, lawn care, and their own appliances, including the washer, dryer, and fridge. They also handle any maintenance for those appliances, given that they are not attached to the home.

No. We do not involve realtors because their commissions and fees are extremely high and would cost both of us money that is better saved for your next property. Instead, we work with a reputable title company that handles the escrow process and all paperwork needed to legally transfer ownership. The title company typically charges around $1,000 for these services, but PassiveRents covers that cost for you, giving you additional savings.

While we do not provide loans directly, we actively work with top DSCR lenders that specialize in financing rental properties. These programs are designed for investors and are based primarily on the property’s cash flow rather than personal income, making them a popular option for both new and experienced investors.

We’re happy to connect you with trusted DSCR lending partners offering competitive rates and flexible terms, so you can finance your investment while preserving capital for future acquisitions. If you’re interested in exploring financing options, Contact Us and we’ll make the introduction.

If you decide to exit, we will help you with resale or buyout options. Many investors hold properties for 5–10 years but are free to sell earlier. We can also coordinate with your trusted brokers or list on the open market if desired.

We’d love to connect! Fill out the contact form in the Contact Us page and we’ll talk to you soon.