How to Quit Your Job with Rental Properties Starter Guide


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Get In Control

Create A Budget to Save for Future Investing

Why You Should Invest in Rental Properties

Three Ways to Increase Equity

How to Think Like a Rich Person

To Be Successful, You Need to Be Educated Like…

How to Have Your Dollars Be Like Employees,…

The Plan–How to Retire in Five Years

Find the Value of the Deal





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Just to say thank you for downloading the Starter Kit, we’d like to give you the full Audiobook of “How to Quit Your Job with Rental Properties” [* 100% FREE *]


We’d also like to give you a printable PDF so you can print out the charts & tables included in the book.





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“Ninety percent of all millionaires become so through owning real estate.”

[* –Andrew Carnegie*]

Thank you and welcome to the How to Quit Your Job Starter Guide! I want to congratulate you for deciding to change your financial future and create your own financial independence. I guarantee these next seven days are going to be exciting, challenging, and very informative for you to start your investing business. By the end of the Rental Passive Income Starter Kit, you are going to be absolutely ready to start your investing business in rental properties.

This Guide is specifically designed for you to learn how to build your financial freedom in real estate rental properties from the ground up.


[*Stop and ask yourself these questions: *]

  1. {color:#000;} How would my life be if I did not need to work 40+ hours a week for someone else in order to make money to pay my bills?
  2. {color:#000;}How would my life be if I never had to worry about how to pay my bills again?
  3. {color:#000;}How would my life be if I could design my life the way I want to live it instead of designing my life around my job?
  4. {color:#000;}What are the things I would actually do with my time if I could do whatever I wanted to do?
  5. {color:#000;}Where would I choose to live if I didn’t have to work to pay for my mortgage?


These are all the questions the financially rich people of the world have the ability to actually ask themselves because they have their money work for them; they do not work for their money. This is the key principle of passive income.


Let’s look at that one more time. Have your money work for you instead of you working for your money. It sounds easy doesn’t it? It is easy once you learn from those who have already designed their life to fit them, not their job. Those people have found the amazing benefits of Rental Passive Income.

Get In Control

[*“Today knowledge has power. It controls access to opportunity and advancement.” *
– Peter Drucker]

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Commit to Self-Education:

To be like the rich, you need to think like the rich. A seed planted will not grow unless it gets the nutrients it needs from the soil around it and the correct amount of water. If the seed is sewn on rocky ground where there is not much soil, the seed may get water, but it will not get the nutrients it needs because there is little soil. If the seed is sown on a path, it will get eaten by the birds and never have a chance to start the growing process. The only way for a plant to grow is to be properly planted where it can get the nutrients it needs for it to grow, then God does the rest of the work.

I recommend reading up on my blog www.masterpassiveincome.com where you will learn valuable insight into investing and passive income. One of my posts will help you greatly, it is the summary and review of “Rich Dad Poor Dad” by Robert Kiyosaki. This book helped me tremendously to learn how to educate myself to be wealthy.

I had always thought that going to school, graduating from college, getting a good job, and retiring with a pension was the path to success. This book blew my mind and shattered everything that I knew, and I am so much better for having read it. You should read the summary today!

[Identify Your Current Financial Situation

“What a banker WILL ask for is your financial statement. Your financial statement is your report card for the real world.”

– Robert Kiyosaki

Everyone has a starting point on any journey they take. Because of life experiences, some may be further along or behind than others. In order to take the first step, you need to assess where you are on the journey. Once you find your starting point, you will be able to know how to take that first step on the journey to becoming rich.

The first step in the long journey is to find out your current financial situation with the attached financial worksheet. This can be a difficult process to go through, but it is crucial because all the other steps build off of this. Your financial worksheet is the foundation you have been building built your entire life, and it is time find out how solid that foundation is. Take the time right now and complete the financial worksheet from the SBA on the next page.

You can download it from[+ my website here+]:



Create A Budget to Save for Future Investing

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[* “We must consult our means rather than our wishes.” *
― George Washington]


When you are creating your budget, be specific and be accurate. The more accurate you are with the numbers, the more likely you will be able to stay on budget and begin saving money for future investing. Also, you may find that you may be over spending in some areas and are possibly going into debt by your spending.

Cut out wasted spending with a passion. Your goal should be to save 10% of your income for future investing. See my post on the book [_ Richest Man in Babylon_] for a very good understanding of time tested ways of how to be rich.

Go to my site and download the Quick Budget Worksheet. Fill out the excel worksheet to find your budget for yourself.

You can download it here.

Once you are done with your budget, save it for later use. See the next page of this Starter Kit for an example budget.

Why You Should Invest in Rental Properties


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Four Ways Rental Properties Make You Money[

  1. {color:#0fb12a;}Cash flow from monthly rent*]
    p. When you buy your rental properties, you must buy them in such a way that you earn cash flow from day one. The rent minus expenses is your cash flow for the property. It is not uncommon to have anywhere from $200-$300 in monthly cash flow from each property you own. It is as easy as doing math you learned in elementary school. If you buy a rental property that has a monthly rent amount of $1,100, and the total expenses are $800, you profit $300 each month the properties rented.

  1. {color:#0fb12a;}Equity! *]
    p. You MAKE your money on a real estate purchase when you BUY the house. You REALIZE the money when you SELL it. Buy low, sell high.

Just as you buy the property to earn cash flow from day one, you also want to buy the property below market value, so you automatically gain equity on the property. If a three bedroom, two bath, single family home market value is $120,000 and you buy it for $100,000, you automatically gain $20,000 in equity for the property.

  1. {color:#0fb12a;}Market appreciation*]
    p. For the last 200 years, the real estate market has doubled in value every 20 years. Two of the main reasons for this are inflation and interest rates. The value of the dollar is reflected in the current gold price. An ounce of gold is worth the same 200 years ago as it is now. It is just the way in which we buy the gold that has changed in value. The dollar, through inflation, has lost its buying power over the years, and the government quantitative easing (governments’ term for printing money out of thin air with nothing backing the value of it) to stimulate the economy. With inflation, the homes you buy will increase in dollar value and history shows the value doubles every 20 years.


  1. {color:#0fb12a;}Tax Deductions*]

Depreciation–The IRS lets you deduct the value of the property over 27.5 years. Depreciation is looked at as an expense, but no money was ever spent. You purchased the property, which makes you money

and still has its actual value, and the IRS lets you deduct part of the value of the property over 27.5 years.[* *]Another great thing about depreciation is that if you give the property to your children, they get to start the entire depreciation cycle of 27.5 years all over again at the current market value!

Three Ways to Increase Equity

There are three ways you can create equity with rental properties. Each of these are built into the system of buying right, renting the property, and getting paid for the value that you bring, not the hours that you work.


  • {color:#0fb12a;}Reduce debt*]
    p. With the monthly rent you collect each month, part of the money goes to pay the mortgage you took for the purchase of the property. A $100,000 home, which can be rented for $1,200 per month, with a 4%, 30 year mortgage is only $477 per month. That leaves $723 per month to pay the property manager and the expenses. The balance is yours to keep as passive income.

  • {color:#0fb12a;}Make money on the first day you own the property*]
    p. You make money when you buy your rental properties because, like stocks, you buy low and sell high. Your goal is to never lose money and you can only do that if you buy a house that fits our criteria that it will make you money when you buy it. Let’s say you find a deal on a property that is worth $150,000, but you can buy it for $100,000. That is an instant $50,000 equity that is kept in your investment. When you want to cash out the $50,000, you can either refinance the property and get a note for the equity, or sell the property and pocket the difference. Remember, you make money when you BUY the property, not when you sell it.


  • {color:#0fb12a;}Forced appreciation through rehab*]

You can increase the value of the same property you just bought for $100,000 by rehabbing it. You can remodel the kitchen and bathrooms, add fresh paint, install new flooring, fix up the front and backyard, add another room, etc. The property that had a market value of $150,000 may now be worth $200,000 even though you only spent $20,000 to fix up the property. Basically, you can make the property more attractive to future buyers by fixing it up, and that makes the value of the property increase.

How to Think Like a Rich Person

What do Warren Buffet, Donald Trump, and Bill Gates have in common? The all learned how to be rich by others that went before them. They got rich by learning the ways that made them rich. They do not have different rules than us, they just know how to use the rules to their advantage. Let’s jump on in!

No More Trading Hours for Dollars and Stop Working

Most employees feel they are worth more than they are being paid which leads to a sense of entitlement. Remember J.O.B. = Just Over Broke. If you have only one job, usually you are only able to work 40 hours a week for one employer and your hourly wage is typically fixed unless you are on a commission. Let’s look at some of the problems with trying to become rich as an employee.

  1. {color:#000;}As an employee you trade your hours for the employer’s dollars, so you are stuck with whatever the employer decides to pay you. If you will not work for the pay, the employer will find someone else to do the job and pay them instead.
  1. {color:#000;}Everyone has limited time to give to a job. Attempting to work five jobs 40 hours a week at each one is physically impossible. There are not enough hours in the week to give, and you would not have the ability to perform as your boss expects.
  1. Employees are a commodity for business owners. Just like any other commodity, it is supply and demand. If you work for Google, your job skills for the position are such that very few people can do what you can do. Your wage will probably be much higher than the normal wage because there are less people who can do your job. If you work for McDonalds, you will probably be making the minimum wage because there are many others who can do the same work as you.
  2. {color:#000;} The IRS takes almost 35% of your wages from you before you can even cash your check. Then if you consider state tax and sales tax, the total taxes you could be paying as an employee can be up to 50% of your wages. Just like that, half your money is gone!
  1. {color:#000;}The biggest problem of them all is, once you stop working, you stop being paid. If you were laid off or fired from your job, how would you pay for your expenses?

To Be Successful, You Need to Be Educated Like the Rich

Check out my blog post summary of the book [_Cashflow Quadrant _]he teaches the four ways people make money: Employee, Sole Proprietor, Business Owner, and Investor.

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Left side of the Cashflow Quadrant: E’s and S’s

Employee–Desires job security, a steady paycheck, no financial risk, and the benefits provided by their jobs (retirement, insurance, time off, sick days, etc.). Sense of entitlement is high with the employee, and they trade hours for dollars. They also pays the highest tax rate.

Sole Proprietor–Is their own boss and are not dependent upon other people for their financial security. These include doctors, lawyers, and anyone who is self-employed. They desire independence and tend to be controlling, not trusting others to do the work as good as they can. Their income is tied directly to how much they work and if they do not work, they don’t get paid. They basically “own” a job.

Right side of the Cashflow Quadrant: B’s and I’s

Business Owner–Starts businesses and hire employees to delegate as much as possible. They work “on” the business and find competent people to work “in” the business. They desire to create a business that can run on its own without them. They focus on creating systems for the business to make money without them.

Investor –Looks for ways to make their money, as well as the money of others, work for them. They desire to work less so they can spend their time however they want while not being tied down to a job. Escapes high taxes by deferring their taxes to a future date or utilizes the IRS rules to pay the lowest tax rate of all the other groups. They receive 70% of their income from investments and less than 30% from a job.

If you want to be rich, you should jump to the B and I side of the quadrant NOW!

The rich focus the majority of their efforts on the Business and Investor side of the Cashflow Quadrant because that is where the real wealth and money is. The good news is, if you are starting in the Employee category you can move to any of the other quadrants at any given time. It IS entirely possible to move from E to I very quickly.

How to Have Your Dollars Be Like Employees, Working 24 Hours a Day, 7 Days a Week

Passive income in monthly cash flow through real estate is truly passive. You are not working for a J.O.B. where you clock in or out, but you are working on your own business. With real estate, property managers are my best friends. I hire the best property manager because I want the best manager looking after my properties making me the most money while I sit back and get my monthly statement in the mail with a fat rent check. My property manager does all the work, gets compensated well, and I just make money.


By owning just one single family home with tenants who pay you monthly rent to live there, you are bringing in $300-$400 a month in passive income. You buy the home once, and your house is working for you 24 hours a day, 7 days a week. Whether you are in Hawaii or camping in the mountains, your property is working hard at making you money every minute of every day. Now imagine you had 10 properties that brought in the same amount of money each month, minus expenses. This would bring you $3,000 to $4,000 a month in passive income.

Here is the general math for one property with easy round numbers:

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[*Rental Home on 321 Happy St.–Purchase Price: $100,000 *]

Monthly Expenses:

Mortgage: $536 (5% note at 30 years)

Taxes & Insurance: $125

Property Manager: $100

Total Monthly Expenses: $761

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Monthly Income:

Rents Collected: $1100

Total Profit (Income – Expenses): $339

This home on 321 Happy Street would bring you $339 a month in cash flow from passive income! Now, imagine you owned 10 of these properties bringing in $339 a month in passive cash flow. This equates to $3,339 in your pocket every month without you doing any work since your money is doing the work. Now, imagine how your life would be if you owned 100 of these properties. Your income would be $33,390 a month in passive cash flow!

The Plan–How to Retire in Five Years[

[* “If you fail to plan, you are planning to fail.” –Benjamin Franklin*]

In order to understand what it would take for you to retire from your job, you need to know what your expenses are. By knowing your expenses, you will have a target income needed to live off of. If you have not completed the budget in day one, do so now. Find the total expenses that you have and that will give you the total dollar amount that you need in order to quit your job. The total I needed was $4,000 a month from passive income for my family and me to live securely and not need my job. Once I found my number I was able to plan out my future investing career.

Now, let’s work on how you can do the same thing, too.

Step 1: Find Your Target Income Amount

You already did this on Day 1 when you did your budget and wrote down your total monthly expenses. This is your benchmark dollar amount you must get to in order to not need a J.O.B. to pay your bills. Once you acquire enough rental properties to pay for these expenses, you really don’t need a job. If your total expenses are $3,800, that would be the amount of income you would need to live off of.

Step 2: Choose Your Path to Success

Let’s use $3,800 in expenses every month for our example. You want to quit your job and have enough income to pay your mortgage, bills, etc. You need to think of what it would take to attain $4,000 in monthly passive income in monthly cash flow. It could be that in the next 5 years you buy a total of 15 properties that make you $300 a month in passive income in monthly cash flow.

There are many different types of properties that will bring you this kind of return on your money. A good rule of thumb is to stick with properties that people in the market you are investing in would want to rent. I personally stay away from two bedroom homes. They are harder to rent, the prices are almost as high, and the rents are much less. I suggest sticking with a cookie cutter type of home.

Step 3: Plan Your Escape from Your J.O.B.

To retire in 5 years with your expenses at $3,800, your yearly plan could look like this:

Year 1: Buy one single family home with $300 monthly income
Year 2: Buy two single family homes with $300 monthly income
Year 3: Buy three single family homes with $300 monthly income
Year 4: Buy four single family homes with $300 monthly income
Year 5: Buy five single family homes with $300 monthly income

At year 5, you have 15 single family homes with $300 a month coming in.

[*That would be $4,500 a month in passive cash flow! *]

Imagine what you could do with $4,500 a month! You could pay your expenses and have extra money to spend on whatever you want! If you continue on that path of adding more properties to your investment portfolio, you double, triple, or even make ten times that each month! Now, you may be thinking that buying properties in that example is impossible.

Believe me, it is not. I have done it, and so can you! In 6 years I bought 19 single family homes that bring in $400 a month in passive income, and I did all this while having a full time job and a full time family. If you learn how to invest in rental properties, you will have the passive income you need to reach your goals!

If you haven’t already, read my blog post on the summary of the book, Richest Man in Babylon for a very good understanding of time tested ways of how to be rich.

Find the Value of the Deal

It is really not hard to find the value of the deal and if it’s going to make you money or not. It is only basic arithmetic that you learned in elementary school. You just need to know the formula to put together to value the deal. So how do you figure out what the cash return will be after a year of ownership? You should calculate your return before you ever make a purchase or even make an offer.

This is the only way to make an intelligent decision as to whether or not the return on your money is worth buying the property. The best way to evaluate the return to see if the property is worth buying is by analyzing the cash on cash return for the property. Basically, if you invest X amount of dollars and can’t return at least 30% in the first year then you should not make the deal.

When you look at the stock market, which gives you at best at 10% return every year, anything above that should be good, right? Thirty percent return is actually a very low number, and I have even seen returns as much as 100%, 200%, and even 500%. This goal of 30% is there to help you in two ways. First of all, so you can make a good return on your money, and secondly, to protect you from any errors that you may have made when you evaluated the property, and it gives you some room to still make money.


[*Step 1 – *]Calculate gross rents, both yearly and monthly.[
Step 2 –]Add up in total all variable expenses, both yearly in monthly.[
Step 3] – Add up in total yearly mortgage payments.[
Step 4] – Deduct variable expenses and mortgage payments from your gross rents.[
Step 5] – Take your net figure and divide it by your down payment. This will give you a percentage
figure that will give you a rate of return on your invested cash.

[Examples: $500 / $2,000 = 25%
$4,000 / $2,000 = 200%
$5,000 / $2,000 = 250%]

Now that you have finished the Master Passive Income Starter Kit you should have a good understanding of how to get out there and start your investing career in rental properties. This is only the beginning of an amazing journey ahead of you. There is so much more to learn about rental properties and how to create passive income through real estate and www.masterpassiveincome.com is here to help you be successful with rental properties.

Now is the time to act!

Get out there, look at properties, analyze the deal, put in offers, and get started on your journey with rental passive income!

Lastly, we’d like to ask that you pass along what you have learned. Share the knowledge you have gained, and give the gift of passive income in rental properties to those that are close to you!

And, if you’d like to know more about how to invest in rental properties, check out the full version of How to Quit Your Job with Rental Properties.

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How to Quit Your Job with Rental Properties Starter Guide

The problem that affects almost everyone today is being stuck in a career they hate. People are conditioned to work their lives away for someone else and only get paid for the hour they work. Anyone privileged with the knowledge of passive income in real estate rental properties will never have to work again. Whether you are a CEO of a corporation or a Janitor, you can learn how to never work again. How would you like to quit your job today because you have enough passive income to live off of? Follow the proven path to financial freedom that many have already successfully navigated. How to Quit Your Job with Rental Properties is written by Dustin Heiner, an active real estate investor who has created enough passive income to quit his job. He is the author of the popular passive income idea website www.MasterPassiveIncome.com. This Starter Guide will give you a glimps into the fantastic world of passive income with rental properties. Your life will be forever transformed when you realize you never have to work again. Build your financial future with passive income in rental properties and quit your job! This is the starter guide to the popular book "How to Quit Your Job With Rental Properties - A Step-by-Step Guide to Unlocking Passive Income by Investing in Real Estate"

  • Author: Dustin Heiner
  • Published: 2016-04-19 04:50:18
  • Words: 4392
How to Quit Your Job with Rental Properties Starter Guide How to Quit Your Job with Rental Properties Starter Guide