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Are Rental Homes an I.D.E.A.L. Investment? PT.6 Summary


Are Rental Homes an I.D.E.A.L. Investment?

There are a lot of investment options available for us today. Stocks, bonds, mutual funds, gold, silver, annuities, etc can all be a part of a solid retirement plan.

for rent


Some people may claim that I am biased, and maybe that is so. However, I firmly believe that rental homes are an I.D.E.A.L. investment and should be included in every retirement plan. Over the next several post I will discuss why this is so and give you some ideas to help you with your real estate investment planning.

Keep in mind that there are no promised returns. I think the examples that I give are realistic but please consult with your own investment and tax advisers.
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As we go through this series I will be using an example of a 3 bedroom 2 bath home with a purchase cost of $100,000. There are two reasons for this. 1. It makes the math simple. 2. That is a home that would be very readily and realistically purchased in this area and market. In other areas the math be be different but the same logic will apply.

Search Cobb Homes priced from $95-105,000

Income
Depreciation - tax advantages
Equity build
Appreciation
Leverage

Summary:

So how does owning a rental home compare to other more traditional investments? Take a look

  • The other investment would need to allow a purchase with 20% or less down payment
  • The 80% remaining would need to be allowed to finance over 15-30 years with no risk of a margin call
  • The 80% would need to amortize and pay off over that time period
  • The investment would need to pay a high enough dividend that it would make the payment of the 80% loan
  • The investment would need to have a ton of tax advantages

Quite simply, that investment does not exist in any form other than rental real estate!

Remember ... Don't wait to buy real estate. Buy real estate and then wait!

Happy investing!




If you missed it Here are the previous installments:

Rental Homes- I.D.E.A.L. Investment? pt1

Are Rental Homes an I.D.E.A.L. Investment? PT.2

Are Rental Homes an I.D.E.A.L. Investment? PT.3

Are Rental Homes an I.D.E.A.L. Investment? PT.4

Are Rental Homes an I.D.E.A.L. Investment? PT.5

Posted Sunday Dec 18