While interest rates are still comparatively low, you may want to take advantage and purchase a second home. A second home can be a great investment for your future. It can generate passive income and provide a great retreat for you from the routine of everyday life. Imagine for a second being the owner of a lakefront home, an oceanfront retreat, or a cottage in the mountains near a ski resort.
If bought at the right price, your second home may appreciate over the years and yield as much as a 10% return on your investment.
Buying investment properties requires thoughtful planning, market insight, and sound legal guidance to ensure your purchase leads to long-term gains rather than financial strain. At Sishodia PLLC, our skilled New York City real estate lawyers can help you make informed choices that align with your goals and protect your interests. Contact us today at (833) 616-4646 to learn how we can guide you through each step of buying an investment property.
Residual Income Definition
Residual income, a financial concept, pertains to the profits obtained by an individual or business from an asset once all operational expenses and debt payments have been covered. Essentially, it represents the surplus money remaining after addressing necessary costs and is frequently used as a gauge of financial accomplishment and stability.
The benefit of residual income lies in its capacity to provide a consistent flow of earnings that can be used for sustaining one’s lifestyle, saving for retirement, or reinvesting in the business or asset. This income can serve as a cushion against economic downturns and unforeseen circumstances that may impact regular income sources. Additionally, residual income aids investors in identifying assets capable of generating passive income in the long run. The generation of residual income contributes to the establishment of enduring wealth and financial stability.
Investing in assets that produce passive income allows individuals and businesses to create a continuous stream of revenue to support their lifestyles, repay debts, and save for the future. Moreover, residual income can provide financial security and help individuals and businesses achieve their long-term financial goals.
How to Generate Passive Income Through a Short-term Rental Investment Property
An investment property is a real estate property that you buy with the intention to rent out in order to generate passive income.
According to recent Airbnb data, the company reached a market valuation of around $77 billion in 2025, with approximately $11.1 billion in revenue and $81.8 billion in total bookings for 2024. It continues to attract new investors as it demonstrates strong performance and promising returns within the global hospitality and short-term rental market.
If you are a fresh investor who is trying to start a short-term rental business, research may be time-consuming and management of your investment property may be overwhelming.
Fortunately, you can partner up with experienced professionals (real estate brokers, property managing companies, and real estate attorneys) who will guide you through the process.
From personal experience in dealing with short-term rentals and receiving passive income from a second home, I would like to share the following tips:
1. Choose a location that is attractive for short-term rental tenants (oceanfront, lakefront, forest property, or a cabin in the mountains by a ski resort);
2. Look for distressed properties that have been foreclosed, listed as short sales, or have been on the market for a long time;
3. Involve a knowledgeable real estate broker to run the comps for you so you can understand if it is a good buy;
4. Check the ongoing rental rate on Airbnb’s website;
5. Prepare an excel table with all the expenses and estimated passive income (you should include expenses like mortgage payments, taxes, repair and maintenance, management fees, renovation, furnishing, and reserve funds);
6. Hire a reliable management company (if outsourcing), cleaning team, maintenance, and repair team, and professionals for other services your investment may review (pool maintenance, gardener, electrician, pest service, etc).
7. Be ready with a reserve as you may be negative for the first year in business;
8. Consider paying off your mortgage faster by making larger payments.
Sishodia PLLC now offers consultations on short-term rental businesses, guiding you through the entire process of starting and succeeding in your short-term rental business.
New York City Real Estate Lawyer
Natalia A. Sishodia, Esq., LL.M.
Natalia A. Sishodia is a highly accomplished New York City real estate attorney dedicated to delivering personalized legal solutions for her clients. With extensive experience in real estate, Ms. Sishodia has represented clients from around the globe, including Russia, Switzerland, Japan, the UK, and the UAE, handling complicated transactions and cross-border legal matters. Her multilingual skills in English and Russian, coupled with her deep understanding of international clients’ needs, make her a trusted legal advisor for high-net-worth individuals, celebrities, and businesses alike.
Focusing on luxury real estate transactions, Natalia guides clients through every aspect of the process, from condominium and co-op purchases to multifamily investments, new developments, leasing, and 1031 exchanges. Known for her meticulous attention to detail and “stress-free” closings, she has successfully negotiated and closed hundreds of real estate transactions across New York. Beyond real estate, Ms. Sishodia provides strategic estate and tax planning, ensuring that her clients’ assets and legacies are protected for generations.
Investing For Income
Investing for income revolves around constructing a steady and passive stream of earnings or cash flow by making strategic investment decisions. This aim can be accomplished using different approaches depending on your financial objectives and willingness to take on risk. The primary aim of income investing is to produce a consistent income source that can sustain your livelihood. However, the procedure is more intricate than it seems. The intention is to also enhance or at the very least safeguard your initial investment, enabling you to maintain your standard of living as you grow older.
Although income investing is commonly associated with generating retirement income, its scope goes beyond that. Income investing serves the purpose of establishing a dependable income stream that remains viable throughout one’s entire life. A recent survey discovered that 49% of Americans invest with the aim of attaining extra income, surpassing the percentage of those who invest solely for retirement purposes (42%).
The realm of investment offers a variety of choices. Some common choices include dividend-paying stocks, bonds, money market mutual funds, and real estate. Each of these options comes with its own array of pros and cons, which encompass differing levels of risk and the initial investment needed to generate income.
Maximize your potential for financial growth with the guidance of a seasoned New York real estate lawyer. At Sishodia PLLC, our lawyers understand the intricacies of real estate investment. We can guide you through the legal nuances, ensuring your investments are protected and profitable. Contact us today to take the first step towards securing your financial future through strategic real estate investments.
| Cost Type | Typical Range | Notes |
|---|---|---|
| Rental yield | 3–5% annual | Average gross return before expenses |
| HOA fees | $1–$3 per sq ft monthly | Higher in buildings with more amenities |
| Buyer closing costs | 2–5% of purchase price | Includes taxes and legal fees |
| Seller closing costs | 8–10% of sale price | Covers broker commission and transfer taxes |
| Property taxes | 0.8–1.2% of assessed value annually | Varies by borough and property type |
Condo Investment Considerations in New York City
Investing in a New York City condo can be an appealing way to build wealth through steady rental income and long-term value growth. Many investors are drawn to NYC condos because of their low vacancy rates, solid rental yields of around 3–5%, and the convenience of hands-off maintenance. Tenants are often willing to pay premium rents for buildings with desirable amenities like gyms, doormen, and roof decks, which can further enhance returns.
However, buying into the NYC condo market also comes with notable challenges. Purchase prices and closing costs are among the highest in the country, and homeowners’ association (HOA) fees can be steep. Market volatility and only moderate appreciation in some neighborhoods may limit short-term profits. It’s important to balance potential income with these ongoing expenses and financial risks.
Investors should also review the building’s offering plan and bylaws carefully, conduct a title search to confirm clear ownership, and stay aware of local short-term rental restrictions. Compliance with landlord-tenant laws, particularly around rent regulation and eviction procedures, is equally important.
Before buying, study neighborhood data such as rental demand, comparable listings, and projected appreciation trends. Work with an experienced New York City real estate attorney to create realistic return-on-investment projections that account for taxes, fees, and maintenance costs. A clear understanding of both the financial and legal landscape can help investors make informed, confident decisions in New York’s condo market.
Contact Sishodia Law PLLC About Getting Started in Real Estate Investing with your Short Term Rentals
Securing passive income through investment property is a smart strategy to build long-term wealth and financial security. By conducting thorough research, choosing the right property, and effectively managing your investment, you can create a steady stream of income that will continue to grow over time. However, managing the legal and financial aspects of real estate investment can be challenging, and that’s where professional assistance comes in.
Seek the help of a skilled New York City real estate lawyer to ensure your investment is legally sound, protected, and primed for success. Take the first step in securing your passive income and invest in your future with confidence. Contact Sishodia PLLC today at (833) 616-4646 to schedule a consultation and make your investment property dreams a reality.
