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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 can be a great way to build wealth and achieve financial independence. But one of the biggest questions on the thoughts of many possible investors is, how much do real estate investors make a year? The answer to this question can depend on a number of things. Still, in this article, we will explore some of the factors that can impact real estate investor income and provide pro tips on maximizing rental income.

Factors that Impact Investor Income

When taking a look at the average investor income, many things can make a difference. These include:

  • Location – the location of a rental property can have a big effect on how much money it can make. Properties in high-demand areas, such as those near good schools, transportation links, and amenities, will usually have higher rental incomes.
  • Type of Property – whether a single-family rental property or having apartments can also change how much money you could make. Single-family properties are easier to rent and maintain, often leading 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. Rents tend to be higher in places where people want to live, and cheaper in places where people don’t want to live.
  • Management Style – managing a rental property earnings can also be affected. Self-management may seem more cost-effective at first, but the truth is that hiring a professional management company can help a lot and improve returns.
  • Investor Experience and Knowledge – an investor’s experience and knowledge can significantly impact their earning potential. Investors who have been in the game for a long time and have built up a strong network and understanding of the market tend to do better than those who are not involved in investor communities and education. Continuing education and being current on industry developments may also assist investors in staying ahead of the game.

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 can be hundreds of dollars or much more than normal.

For single-family rental property owners, several helpful measures can be used to determine your rental income depending on the type and number of businesses 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 get a good grip on 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 helps an investor determine the best investment strategies for your market.
  2. Price your rental property correctly. Your rental rate should at least cover all property expenses, including mortgage payments, taxes, insurance, and maintenance. To generate income, your rate will need to exceed your costs.
  3. Invest in single-family rental property. This can be an excellent way for investors to build long-term wealth and achieve financial independence. Single-family rentals provide consistent cash flow and benefit from appreciation over time.
  4. You should keep in mind that rental property ownership requires diligence and hard work. Rental property owners should always be open to learning new skills and strategies to maximize their income.


Contact Real Property Management Honolulu to learn more about earning a passive income and achieving financial freedom through real estate investments in Aiea and the surrounding area. Our experts can offer competent and approachable advice on property management and real estate investment matters. Call us at 808-445-9500.

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