I met with my financial adviser yesterday and I decided that when I retire, I would like to sit back and collect a check. There are several ways to do this, but the one I am talking about today involves owning rental properties.
I do own a single rental property. I bought it a year ago for my daughter to live in while she finishes up her Masters degree. We rent the other 2 bedrooms out to friends of hers. The home is paid for and generates $1000 per month revenue. This minus $156 monthly condo fee, $100 in taxes per month, and maybe another $50 per month in "whatever costs" leaves me with $694 per month, if I did my math correctly. What if I had 10 properties like this? That would be close to $7,000 per month in income!
Don't want to be a landlord? That's easy. Hire a management company for 10% fee, pocket $6,300 per month ($75,000 per year).
No one says you have to buy 10 rental properties this year. Why not do this over time? Not only will this provide income when you retire, but the homes should appreciate over time as well. Also, rent income is pretty stable over time. No 1000 point drops in the stock market to worry about!
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