When referring to Retirement, one of the key topics is always multiple income streams. Social Security Payments, retirement fund distributions, annuity payments or, if you are really lucky, a pension.
But for those looking for a little more income into their stream, Real-Estate investing is another option.
But investing into Real-Estate is as simple as writing up a cheque to a Mutual Fund Company. It requires work, maintenance, and a potential migraine or two.
However though those investors willing to put int the work and money and most importantly the time, they may find themselves with a metaphorical pipeline toward their retirement dream that we all desire.
Current landscapes are still positive for real estate investors. The best options available are single family or a small 2-4 bedroom apartment building. Though with homes they come with the risk of having no one rent them out and therefore leaving you liable for all 100% of it’s vacancy rate, while the apartment building can spread the vacancy risk.
Properties near the average or median property value of $210,000 tend to be the least risky and can command a good rental rate. Houses with three bedrooms, two bathrooms in a good neighborhood, in a strong school district and in good shape are the most desirable. Think opportunistically. Be on the lookout all the time, because good deals come and go quickly
The old Real Estate saying is Location, location, location. The location of the property is very important if you plan to manage the property yourself then you must be prepared to show to home to tenants yourself, be on call for regular maintenance and repairs, in this way you may want to consider a property near your own for convenience.
Other considerations are are different types of neighborhoods. Are you willing to be an aggressive investor looking at property in perhaps undervalued but potentially more risky neighborhoods?
And finally the most important part in renting and being a property owner is to select your tenants carefully. The tenant screening is one of the most critical steps that in usually discounted. If not managed correctly, a whole host of issues could be created to significantly damage your returns, such as increased risk of tenant default, eviction and litigation.