By investing in single-family rental properties, early retirement is not only feasible but also could be simpler than you think. If you have not thought about using real estate as a part of your retirement income strategy, you will regret letting go of the opportunity for financial freedom.
Procuring marketable properties in Pequot Lakes and taking care of them properly can definitely get to be the most valuable segment of a retirement plan. Real estate is another good way to diversify an investment portfolio, making sure that your entire retirement income is not bound to a volatile stock market.
Some of the wealthiest people in the United States became successful and financially independent through real estate investing. And yet, advances in technology and new business models have given small investors the means to utilize the power of real estate investing for genuine financial freedom. Real estate almost always grants favorable annual returns compared to savings accounts or even 401k plans and is usually much more stable than stock and bonds. This indicates that by investing in Pequot Lakes rental properties, you are expanding your investment dollars through different means that you may have not considered previously.
You should be able to get a return on your investment over the life of the mortgage with a high-quality rental property. Over the long term, having a rental property costs an investor minimal outside of the down payment on the grounds that the rental payments are used to pay off part or all of the mortgage and other costs. Extra rental income can be either made to replenish those funds or re-invested to grow a retirement fund even more. After the mortgage is fully paid, rental income can continue indefinitely. It’s characteristic for rental rates to surge up regularly once a year, which would really create an income that keeps pace with inflation.
For now, well-maintained property is liable to continue to appreciate. This conveys the message that if the time comes to sell, the property should lead to a lump sum payment beyond the original purchase price. Assuming a 3.4% increase each year, a property would roughly double in value over 30 years, a sum that could then be converted into an annuity and provide an ongoing monthly income for another 30 years.
Consider the pros and cons of this example: an investor buys a median-priced single-family home and puts 20% down. Monthly expenses would include average maintenance costs, insurance, property management fees, and property taxes. Monthly income would equal the market rental rate for the property. In today’s dollars, the monthly expenses and rental income from a carefully chosen rental property would balance each other out.
As rental rates go up the following year, the property would go from breaking even to positive cash flow, which would only increase in succeeding years. As expected, rental property investment can actually pay for itself over the life of the mortgage and become the start of on-going retirement income after that time.
To reach real financial freedom, it is normal to invest in and handle more than just one rental property. For present-day rental property owners, there are other possibilities that you may use to leverage the equity in your existing rentals to do just that. Adding investment properties can help you retire earlier than you thought possible and, at the same time, increase your retirement income once you do. There are plenty of lenders out there who can be of service to real estate investors who are considering owning various rental properties. Many of these lenders offer outstanding services for investors of all sizes.
A lot of people are concerned about the time and work necessary to direct a rental property over a long duration. But that is an old-fashioned way of understanding how to invest in real estate. Nowadays, Pequot Lakes rental property ownership can be hassle-free by hiring the best property management team available.
At Real Property Management Deluxe, we locate and screen tenants, handle collections and bookkeeping, and take care of maintenance and repair requests. We also help maximize your rental income with market assessments and by setting accurate rental rates, ensuring your rental property remains profitable and in good condition for years to come. Contact us online or call us at 218-454-7962 to learn more.
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