Retirement Income from Rental Properties

One of our favorite things to do is find a way to help people retire the way
they want to and live the life they've always wanted to live in their "golden
years." 

In these uncertain times, real estate is one of the few investments which is
secured by an actual, tangible thing.  If you invest properly, you can ride out
the rough times and find yourself very well off in the good times.

Calculating retirement income from rental properties is important!

Before you buy, consider:
 
Whether you have a 401k or other retirement plan, income from rental property can
make your later years more enjoyable. 

Look in your price range, and calculate cash flow. Determine your expenses and
deduct them from rental income.  The balance is your cash flow.
 
Depreciation sounds like an expense, but it is generally a tax advantage. On a $125K
property, depreciation over 27.5 years will be a $3,636 tax deduction.
 
In the early years of a mortgage, interest reduces earnings, so you won't have much
profit. During this time, depreciation reduces taxable income from other sources.
In later years, it reduces tax you pay on rental profits.
 
When you retire, you can use monthly rental income for normal expenses and travel,
or sell the property for a lump sum to use for something you always dreamed of owning.
In years to come, your property could double in value.
 
Some things to consider when looking for a rental property:

Location
Rents are rising and will continue to rise in stable neighborhoods. Location should
not be too far from where you live now.

You can often buy a duplex for not much more than a single family home, with higher rents.
Find a building which complies with building, zoning, and fire codes, with low maintenance costs.
Have your agent tip you off to buildings with out-of-town owners eager to sell.
Sometimes these owners will take a 2-5 year contract for deed, with a very small down payment.

Why not let us apply our years of experience to guide you? 
Contact us today to find out how we can help:   www.synergysolutions4u.com