What Can Your Rental Do For You?

 

Buying investment real estate is a great tool to diversify your investment portfolio. Having all your eggs (savings, retirement funds) in one basket is known to be problematic. Various avenues of savings should be part of your retirement strategy and a Rental Property or two can provide just that.

 

Rental properties purchased carefully, like we talked about in our blog- Building Your Real Estate Portfolio, can provide additional streams of income to you – Day 1. When you purchase a property that cashflows immediately you can either use that money as extra income or use those profits to pay down a mortgage if you have one. You can also put those profits into a savings account and use it as an unexpected expenses fund for that property as well.

 

Rental properties can also provide a nice income stream in retirement. With the right size portfolio of paid off properties you could be very comfortable. I was speaking with a golf buddy about her parents’ rental property purchased in their 40s. She shared that they had purchased a quad (4 units) and now that property provides most of their income for the month and they are well into their 80s now.

 

Willie, our in-house investment Guru here at Walters & Co. likes to see at least 6 properties in an investor’s portfolio with a good mix of condo/single family homes. He guides our 70+ investors from purchase to sale and everything in between. He can help with portfolio performance assessments as well. -Sorry, not sorry for the shameless plug-

 

If you think you would like to learn more about building your own investment portfolio or are curious about buying your first investment property please click on the link to schedule a chat with Willie or Lizz!

Do You Know How Your Home Is Insured?

One of the lessons from the Marshall Fire that has come to light is how people’s homes are insured. In speaking with our attorneys last week, they informed us that some people are not fully insured because they changed the name that is on their deed. Many people buy real estate in Trusts and LLC’s or buy them personally and transfer them to Trusts and LLC’s. When you do this, you need to remember to let your insurance provider know so that the home is covered by the policy. Call your insurance provider today to make sure your personal or investment property is named correctly and you are insured!