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How many houses do you need for passive income?

How many houses do you need for passive income

Building a passive income from property is a dream for many. However, the journey can often seem daunting without a clear strategy. In this guide, we’ll explore the SR Method—a proven approach to constructing a successful property portfolio. The method focuses on Serviceability, Structuring, Selection, Sourcing, and Refinancing.

Understanding Serviceability

Serviceability is the cornerstone of building a property portfolio. Essentially, it refers to your ability to borrow money from the bank. Using other people’s money is crucial, as it allows you to leverage your investments and grow your portfolio more quickly. If the thought of debt scares you, don’t worry—there are ways to manage and overcome this fear.

Moreover, there are techniques to maximise your borrowing power. These tricks of the trade can help you borrow more money, enabling you to purchase additional properties. Without maximising serviceability, building a substantial portfolio becomes much more challenging.

I go into detail in my youtube video. CLICK HERE TO VIEW.

How Many Houses Do You Need For Passive Income?

The Importance of Structuring

Proper structuring is key to growing your property portfolio. While you might buy your own home in your name to take advantage of tax benefits or the First Home Owner’s Grant, investment properties should be purchased through different structures. This approach not only optimises tax efficiency but also enables you to keep buying more properties over time.

In fact, you don’t need a massive portfolio to achieve significant passive income. With just one or two high-growth, high-performing properties, you can aim for $2,000 per week in passive income. Thus, getting the structuring right is essential to continuing your property investment journey.

Sourcing Properties Under Market Value

  • Sourcing properties under market value is crucial in the SR Method.
  • Building wealth through property requires making money from day one.
  • Buying properties at or above market value puts you at a disadvantage.
  • Focus on finding deals to purchase below market value.
  • This strategy ensures immediate equity.
  • Accelerates your ability to buy more properties.
  • Buying under market value prevents losing money from the start.
  • Enables quicker portfolio building.
  • Sourcing the right properties is vital to the journey.

I know it’s a lot of information! Check out the video on How many houses do you need for passive income for all the info!


In summary, the SR Method offers a clear path to building passive income through property investment. By focusing on serviceability, structuring, selection, sourcing, and refinancing, you can create a sustainable and profitable portfolio. While the process might seem overwhelming at first, breaking it down into these manageable steps makes it much more approachable.

So, how many houses do you need for passive income? The answer may be fewer than you think. With the right strategy, even a small portfolio can generate substantial income. Remember, the key is not in the number of properties, but in the quality and management of each investment.

Ready to start your property journey? CLICK HERE