Let me tell you a story of the couple I have heard about. They had good paying jobs and already had the first house they bought paid off by the time they were in their mid thirties: they choose not a 30 years loan but 15 years to pay it; but in addition they were paying extra cash monthly toward the principle on their mortgage.

OK your have heard this story before but let me change the decision they made as to what type of house to buy.

They decided get a property they can rent as a vacation home. There will be a different set of expenses and upkeep but the idea is the same- although the income will have to be generated and available in a different manner.

Their goal was to generate over $3000 in additional revenue as a passive income

The property was able to be rented only 75% of the year, due to the slow season and times when they wanted to enjoy the spot themselves. The average rental price per week was: $678. Therefore during the 39 weeks it generates revenue it brings $26443 a year or $2203 a month. Again knowing that some of the cash has to be available for emergencies they put away $1000 in a 6 moth CD’s. Now the CD’s were yielding 1.92 percent after three months with yearly returns of $60, or $5 a month.

The remaining $1203 was again used in the stock market. This time the stock was a safe large cap type Apple Inc- stock AAPL. Its average purchase price between September 2009 and September 2010 was $124 and by end of September 2010 they had 136 stocks in hand. The sale price was $190 and the capital gain ended up at $10122, or $778 a month.

Goal $1610 a month

Cash invested and>> % of total>> Yearly>>Monthly

$2203 from rent>> 72%>> $26443>> $2203

$1000 in CD at M&T>> 1.6%>> $60>> $5

$1203 in AAPL stock>> 27%>>$10122>> $778

TOTALS>> 100%>> $36625>> $3052

Lourdes, the Estate agents offer flats to rent in Canary Wharf area. They also offer property management services and selling help. You may now contact the Estate and letting agents for more information and services.