Ever considered adding Revenue Properties to your Retirement Portfolio? If you are looking to retire or have retired already, it's an option you may want to peruse. My niche is helping the average person earn an extra paycheque and and tuck away a little lump sum for your latter years or have some money to spend while you are alive.
For example if you bought a Revenue Property for $100,000 (not so good looking) you would need around $25,000 for downpayment and closing. Let's say you can only rent out that place for $900 mo. Tenants pay their own utilities, you are responsible for taxes and insurance. It would cost you approx. $600 to maintain this property, you are collecting $900. You do the rest of the math!
Ultimately, someone is paying off your mortgage, giving you a little bit to put away for repairs and your investments in most cases is appreciating each year.
So you are concerned about the maintenance and repairs? Let's see what could be positive about this????? Well, it will help to have something to write off at tax time seeing that you have extra income, also you may be able to write off the interest. There is always Property Management to maintain your property and look after the tenants. Be sure to find a good one who actually cares about your investment.
So, let's say you locked in for 5yrs, you would have collected $54,000 if there was no vacancy during that time, but life has surprises, so let's put in place for a 3% loss due to vacancy. That would mean that you lost $1,620.00 hopefully that would not be every year but even so, losing $8000 in 5yrs would still leave you collecting $46,000, not so bad considering your $20,000 investment is still safe and growing.
Sounds interesting? Link me, let's talk!