How This 59-Year-Old Investor Built A Real Estate Portfolio That Generates $105K/Per Month In Passive Income

Building a passive income stream is a process that is as difficult as it is rewarding. Although investors have more means than ever to accomplish this goal, real estate remains one of the most reliable paths, and Steve Barsh has mastered the formula. The 59-year-old parlayed profits from various business deals into a real estate side hustle that earns him $105,000 per month. Keep reading to find out how.

A CNBC profile traced Barsh's path from CEO of his software startup to part-time property manager earning over $1 million per year. The first thing to realize is that it wasn't an overnight process. Generating that kind of income never is. Barsh's story started 26 years ago when he sold his software startup and used the proceeds to purchase a three-bedroom condominium in Park City, Utah for $820,000.

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It was a hefty price, but Park City is one of America's favorite ski destinations and hosts the internationally known Park-City Film Festival. Barsh and his wife were living in Philadelphia when he bought the place and they contracted with a local management company to rent it out when he wasn't using it. However, Barsh began to feel like the management company was overcharging him and decided to take over the process himself.

It wasn't long before his inner entrepreneur saw the income potential of managing vacation rentals in Park City. He decided to start his own management company, which he called Parker Chase Properties. Barsh also purchased several more properties in the Park City area and now owns four out of the five Park City condos managed by Parker Chase.

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He used a combination of profits from selling the first condominium and money his wife made in a business deal to buy the properties, which cost him a total of $10 million. Then he went about creating a luxury experience for his guests. Park City draws a sophisticated crowd with refined tastes, and Barsh prides himself on meeting their lofty expectations. 

He visualized what he would want in a luxury ski vacation property and equipped his units accordingly. Barsh added amenities like giant flat-screen TVs and plush leather chairs to his properties. In addition to that, he prides himself on being very attentive to his client's needs. He related a story to CNBC about a guest who really wanted a rice cooker. Not only did he immediately go to Costco to get one, but he bought a very high-end model.

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These kinds of touches are expensive, but they are paying off. Barsh's place rent on Airbnb and Vrbo his March availability shows them fetching $3,390 per night, which he says is more than four times what AirDNA.com reports as the average nightly rate in Park City. He has also discovered that he has a real knack for the hospitality business and enjoys providing great experiences for his tenants.

Barsh told CNBC, "I don't know what it is in me, but I really enjoy hospitality. I really enjoy it when people tell me they've had an amazing experience. It just makes me feel good."  Barsh estimates that his properties are bringing in about $1.27 million per year, which works out to $105,800 per month. He keeps about half of that after expenses and now lives in Park City full time with his wife and children.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

You Can Profit From Real Estate Without Being A Landlord

Real estate is a great way to diversify your portfolio and earn high returns, but it can also be a big hassle. Luckily, there are other ways to tap into the power of real estate without owning property. Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.