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Before you take the plunge, it would be wise to talk to others who have had experience in this field. nvesting in rental property isn't for everyone; but if you're cautious, patient, involved and make good use of the right professionals, residential real estate investing can provide steady, reliable, long-term growth in your income and net worth.
With the recent increase in values, don't you wish you owned ten homes right now? If you've been thinking you would like to own a rental someday, but are hesitating because you don't know just how to go about it, contact me. Let's talk about it over a cup of coffee.
Having a tenant help you buy a home by paying you rent, while appreciation is working for you, is a great way to increase your net worth. With leverage and tax advantages, you will find no better way to build a nest egg fast.
There is a story of a man who bought one home every year for twenty years, then retired and lived off borrowed money the rest of his life.
This man didn't buy fancy homes in the best part of town. He bought low priced homes that would command good rents. The first year he bought a home with his savings as a down payment. He refinanced the second year and used his remaining savings for a down payment on the second home, a fixer-upper. He rented out the first home and fixed up the second home. In the third year he refinanced both homes together with one lender, and had enough for a down payment on a third home.
In the fourth year he was able to get enough for a down payment on two homes through savings and refinancing, so he bought two homes, then skipped a year. In the sixth year he only had to refinance one of the homes to get the down payment for a home, so he refinanced the first home. In the seventh year he refinanced the second home. He continued in this manner through the twentieth year and owned twenty homes.
The man then retired. He refinanced the first home once again and lived on the cash from the loan that year. The second year of retirement he refinanced his second home even though he had plenty of cash left over from the previous year. He continued in this manner for the rest of his life. He did a lot of travelling, golfing and making other investments as a hobby. Interesting that, even though he paid income taxes on any profits, I am told borrowed money is not taxable.
Imagine having an inventory of twenty homes and imagine the cash you can pull out of a home with a twenty year old mortgage... and doing it every year for the rest of your life!! Can this be done today? Probably. Talk with your tax person.
I have experience with rental properties
and can give you information ranging from how to select a good tenant to
how to use tax deferred exchanges to increase your wealth. Contact me for
a meeting to discuss whether owning rental property is for you.
Email:
buyerbroker@sbcglobal.net
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