How to Retire by Investing in Real Estate

How many rental properties would you need in order to retire? Well, the answer to that obviously depends on a lot of variables like number one do you own the properties free and clear or do they have a mortgage personally with how incredibly low-interest rates are right now I am inclined to say that you're better off to have more properties with mortgages than fewer properties that are free and clear but still with very strong large down payments so that you have a great equity and cash flow position on those properties heading into retirement.

The second question is how much income are you going to need for retirement and is it all coming from these rental properties or are you you know subsidizing your retirement income with other sources if it's something that you're thinking about you know owning rental properties through retirement to help provide you with consistent income throughout retirement I think it's an excellent strategy one reason for that is that real estate properties rental properties are inflation-proof you know as inflation is a really hot topic right now and as inflation continues to rise to guess what rents continue to rise as well and if you have a mortgage payment on it your mortgage payment stays the same so you're going to be able to grow the rents along with inflation and continue with a great cash flow as long as you own the property.

So you know let's just say hypothetically if you were receiving 500 a month in cash flow from each property and you wanted $5,000 a month in retirement income then you would need 10 properties now of course only $500 a month in cash flow from one property is pretty low that would assume that you have a mortgage on it and oftentimes you're going to find that you even with the mortgage you get even better cash flow than that if the property is free and clear at least here in the Phoenix area there's almost nothing available for rent for under eighteen hundred dollars a month.

So, if you owned the properties free and clear you would really only need to own three or four of them to achieve your goal of $5,000 a month in income plus of course you have the benefit of the values of all of these properties going up so if you hit something in retirement where you suddenly needed a bunch of money all at once you would probably be in a position where you could sell off one of those properties and cash in the money and do whatever it is that you need in retirement, of course, you would lose that consistent income but you'd be able to evaluate that in the future or possibly exchange the properties for additional properties and we help people with those types of decisions.

So again if you are considering incorporating rental properties into your retirement portfolio we would love to do a consultation and see if it is a good fit for you you.

What does this mean to you? If you're even a little bit interested in learning more about participating in the Phoenix housing market as a seller, buyer, or investor... you NEED to know this stuff! Or at least work with someone who is obsessed with the market stats. Reach out to me today so we can start working on making your real estate dreams a reality!