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Real Estate Investor Earnings: A Yearly Overview

Line drawing of house containing an upward trending graph in front of businessperson holding out their hands. Real estate investing might prove to be a fantastic approach to build wealth and achieve financial independence. But one of the biggest questions on the minds of many potential investors is, how much do real estate investors make a year? Nonetheless, in the context of this article, we will investigate certain aspects of the factors that can impact real estate investor income and provide pro tips on maximizing rental income.

Factors that Impact Investor Income

In examining the average investor income, various factors can impact. These include:

  • Location – the location of a rental property has the potential to significantly affect its revenue potential. Properties in high-demand areas, for example, homes close to reputable schools, well-connected transportation, and amenities, tend to have higher rental incomes.
  • Type of Property – whether a single-family rental property conversely, the existence of an apartment complex may influence potential revenue. Single-family properties demonstrate smoother leasing and care processes, which can frequently lead to higher rental returns than apartments.
  • Investment Size – the size of the investment is also essential when it comes to predicting income. The more properties a rental property owner owns, the higher their chance of generating meaningful rental income.
  • Market Conditions – market conditions around a rental property can also affect income potential. When demand is robust, rents usually increase, and the converse applies to locales with weaker demand.
  • Management Style – managing a rental property can also influence gains. Self-management may seem more cost-effective at first, but the truth is that hiring a professional management company can substantially lower headaches and improve returns.
  • Investor Experience and Knowledge – an investor’s experience and knowledge can considerably impact their earning potential. Those investors who have accumulated considerable expertise over a prolonged period and established a strong network and understanding of the market typically achieve better results compared to those who are not engaged in investor communities and education. Continuing education and being current on industry developments could also help investors in staying ahead in the industry.

Average Investor Income

According to national data, the average income for real estate investors in the United States is about $140,000 annually. Of course, that number varies widely from state to state and even from market to market. For example, the average real estate investor income in North Carolina is about $107,000, while in New York, it is $161,000. Each state’s investor income may span from a few hundred dollars to notably exceeding the average.

For single-family rental property owners, you can use several helpful metrics to determine your rental income based on the type and number of properties you own. For example, the 1% rule is a way to determine target rental income. This rule says that the amount grossed through monthly rent should be at least 1% of the final property purchase price. For example, a $200,000 property should rent for at least $2,000 monthly. You would then need to deduct monthly expenses to calculate the expected net profit.

Maximizing Rental Income

Once you’ve grasped the concept of the factors that influence real estate income, several pro tips help maximize your rental property profits.

  1. Do your due diligence and research the rental market in your area. Knowing the going rates for rent and expenses assists an investor in identifying the best investment strategies for your market.
  2. Price your rental property correctly. Your rental rate should at least cover all property expenses, covering mortgage payments, taxes, insurance costs, and maintenance charges. To generate income, your rate should surpass your costs.
  3. Invest in single-family rental property. This offers investors a fantastic approach to build long-term wealth and achieve financial independence. Single-family rentals provide consistent cash flow and benefit from appreciation over time.
  4. It’s crucial to recall that rental property ownership necessitates persistence and labor. Rental property owners should always be open to learning new skills and strategies to enhance their revenue.


Contact Real Property Management Concierge to learn more about earning a passive income and achieving financial freedom through real estate investments in Hackensack and the surrounding area. Our experts can offer competent and approachable advice on property management and real estate investment matters. Call us at 201-514-1603.

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