The market is off to a robust start here in 2020, but let’s not forget that stocks are only one piece of a balanced, holistic portfolio.

Another foundational pillar to long-term wealth creation — and great income — is land .

But as you’re close to read “real estate” doesn’t need to mean putting down an enormous chunk of cash to take a position during a rental home or apartment. It seems , there’s a neater , less-costly thanks to start generating cash flows.

For these details, in today’s Digest, we’re turning things over to InvestorPlace’s income specialist, Neil George, editor of Profitable Investing. Whether through high-yielding dividend-stocks, bonds, REITs, MLPs, or more obscure investment vehicles, Neil is a master of finding his subscribers big income.

So, today, let’s see what idea he has for us.

Enjoy.

Jeff Remsburg

Parking Cashflows From the Oldest Means of Income Investing

By Neil George

I have just had my book, Income for Life, published! Today, I’d like to share one of the 65 chapters of income-generating ideas that absolutely anyone can start using on day one.

One of the book’s themes involves one among the oldest means of generating income. To give you a touch , it’s one among the foremost desired Christmas gifts of the Peanuts character Lucy van Pelt within the 1965 film, A Charlie Brown Christmas.

Lucy tells Charlie Brown what she really wants for Christmas … Real Estate!

Real estate is no new investment. According to the Pew Research Center’s analysis of U.S. Census Bureau data, 37% of Americans rent out their homes. While real estate is a common way to make residual income, it comes with a laundry list of responsibilities.

But one of the easier and more lucrative means of generating rental income on a dollar-per-square-foot basis, rather than renting out your house or apartment, is found in leased parking places.

I remember that when I first lived in Manhattan, on the East Side between First and Second Avenues, my monthly parking was substantially more than the lease on my car.

More and more savvy real estate owners are waking up to capitalizing on leasing parking places and, in doing so, parking space investments are becoming more popular.

They are both low-maintenance and easy to occupy. The average landlord of a residential property must process tenant applications.

This includes background checks, proof of employment, credit score checks and past rental references.

And this process doesn’t include the overall and specific maintenance and security of the residential properties.

If you’re trying to find an out-of-the-box thanks to hire out land , parking spots are one among the only strategies.

Parking Spots vs. Residential Properties

Before buying every parking spot in view , let’s first take a glance at a number of the benefits parking spaces have over residential rentals.

Easy Entry Points

Where I currently reside in the Washington metropolitan area, parking spots can be purchased for anywhere from $10,000 to $50,000.

While a parking space is typically not available to be financed, that’s a low bar to generate relatively easy income. Many folks have that in savings or can partner with others for a group investment.

High-Grade Returns

For prime residential real estate in Washington, DC, like an $800,000 condo, rent would have to be sky-high just for a landlord to make a decent profit.

A landlord would have to charge $5,000 just to cover home association fees and to generate a $3,000 profit. (That’s a 4.5% annual return on your investment.)

On the other hand, monthly parking rates average around $300 in DC. A $20,000 parking lot (with a $300 monthly fee) yields an annual return of 18%.

Low-Maintenance Management

Unlike residential rentals, landlords and property managers have much fewer responsibilities with parking zone rentals. Landlords handle general maintenance and repairs (emergencies included).

If there’s a leaky faucet or a broken pipe, the owner is that the first one getting a call. Matters like parking lots are non-factors.

Also, residential landlords need to lookout of mortgage, taxes, homeowner association (HOA) fees, accounting and legal fees.

No Rent Control

The last words a residential landlord wants to hear are “rent control,” which poses the risk that a landlord might collect below-market-value rent.

The chances of rent control affecting a parking space are slim to none. This means less restrictions for parking space owners.

And with more municipalities and even states moving to impose rent controls –parking space properties may well become even more valuable.

Less Personal

When renting out a property to an individual, especially one with a family, evictions can become a nightmare.

Not only do you have to be concerned with getting into the property, you also have to worry about getting tenants (and their belongings) removed.

If parking spot tenants don’t fulfill their end of the agreement, their cars can simply be towed. Squatter laws will never be an issue.

Now that we’ve covered the what and why, the next up is the “where.” Here are the top five cities where parking space landlords can get the biggest bang for their buck.

The Top Five Cities to hire out Parking Spaces

No. 1: San Francisco

Famous for several things, including the Golden Gate Bridge, San Francisco has become a serious attraction.

Not only does the Golden Gate Bridge attract 10 million people annually , San Francisco has the fourth highest cost of living in North America.

This means a landlord can up the rate on his parking fees.

No. 2: Washington, DC

The capital of the United States is filled with attractions that allure people from all over the globe. Washington’s cost of living is the seventh highest in North America.

It’s a place where culture, history and politics meet along with a vastly improving culinary scene with a quick ascent in the number of Michelin-Starred restaurants.

No. 3: Los Angeles

It’s a place of glamour, fame and fortune.