As I lay there in my bed wondering if death would be preferable to this flu I’ve been battling, my phone rang.
“Chris. This is Julie. I just wanted to let you know that two people dropped off checks for you this morning and I’m going to put them in your box for you.”
Ahh. See, here is the deal. Just because I’ve been sick doesn’t mean my expenses have stopped piling up. With four children and $305 gas heating bills the expenses never stop. But because I have income property, neither does the revenue.
We’ve discussed before the importance of purchasing Kansas City investment property on sound fundamentals. My basic premise has always been that if you buy on fundamentals then the property should support itself regardless of appreciation. And this would eventually lead to a Retirement Worth Having.
As I lay there I began to think about another benefit of owning income property that is self-sustaining:
Residual income for when I cannot perform.
Let’s say that you set off down the path to be real estate investor but you never acquire more than one or two rental properties. Something happens in your life and you can no longer work. So long as you have purchased these properties using appropriate leverage within a sound economic concept you should be able to use these properties to help offset some of your monthly expenses.
Now, because my brain is still tired and all I really want to do is go back home and go to sleep I’m not expanding on this as much as I probably should. Hopefully, however, you get the idea.