Retire Early... Invest In Out-Of-State Rental Properties!
5 Year Retirement Plan
Retire in 5 years with an income of $90,000 to $110,000 per year tax free for the rest of your life!
Purchase 10 out-of-state properties valued at $150,000 each, owning $1,500,000 in real estate. Each property would cost you $4,500-$10,000 for a total business investment of $60,000-$85,000. Let the properties incubate for 5 years, then pull out the equity of your two best properties and retire making $95,000-$110,000 a year tax-free forever. This great plan doesn't even include the awesome benefits of cash flow, increase of rental income each year, principle pay down and tax sheltering. Call us and get started today!
Working The Numbers...
Using 7% appreciation rate (national average) and multiplying by $1,500,000 in property.
Income
First Year = 7% x $1,500,000 = $105,000
Second Year = 7% x $1,605,000 = $112,350
Third Year = 7% x $1,717,350 = $120,214
Fourth Year = 7% x $1,837,564 = $128,630
Fifth Year = 7% x $1,966,194 = $137,634
Return on investment first year is 175%!
In Five Years, You Will Have Made $603,828
In Ten Years, You Will Have Made $1,450,728
Pull Out The Money
Do a cash-out-refi on your two best properties (borrow 90% of the equity).
Years One Property Two Properties
5th Year $45,000 - $55,000 $90,000 - $110,000
6th Year $45,000 - $55,000 $90,000 - $110,000
7th Year $45,000 - $55,000 $90,000 - $110,000
8th Year $45,000 - $55,000 $90,000 - $110,000
9th Year $45,000 - $55,000 $90,000 - $110,000
10th Year $45,000 - $55,000 $90,000 - $110,000
You now have a tax-free income for the rest of your life of $90,000 - $110,000 a year from your initial investment of $60,000 - $85,000.
Note: National appreciation average is 7%; at this rate properties will double every ten years.
New homes starting at $95,000
$4,750 Down payment @ 5% buys you a new house
Builder's will pay 2% of the non-recurring closing costs
Rental Ready Package ... All new homes include front and backyard landscaping, window coverings, refrigerator & stove and garage door opener
Strong appreciating markets where properties are projected to double in value in 5-10 years
Properties are located in great rental markets
Positive cash flow to breakeven properties
Property management will take care of your investment at a discounted rate
Invest out-of-state where the numbers make sense
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Windermere Real Estate - Park City, UT
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner
Hi Elliot,
Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!
-Keith
Feb 19, 2008 08:32 AM
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert
Elliot, Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points
I do have a question about your post: Why does it have to be out-of-state rental property? And which state do you choose?
Happy blogging and good luck!
Feb 19, 2008 04:57 PM
Chuck Willman - Alpine, UT
NewHouseUtah.com
Welcome Elliot- I've always enjoyed your insight regarding investment properties. So good to see you here and I look forward to seeing more from you.
Feb 20, 2008 02:50 AM
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