Rental Property For Retirement

What is the number you need for a secure retirement?

You probably have something in mind.  And we’ve all been taught it is a number rather than a cash flow.  But what if you could own rental property for your retirement?

Your social security check, if it still exists, will be cash flow. The withdrawals on your IRA, 401(k), etc will be considered cash flow.  Why not rents from your rental properties?

I have discussed over and over again on this blog, since 2006, the pluses (and minuses) of owning and managing income property.  And it is still my opinion that the pluses far outweigh the minuses.  That is especially reinforced this week when I see my IRA drop in value by 10% in two days while my rental property continues to perform.

Yes, 2008-2011 was a real estate apocalypse as far as real estate values are concerned. But you know what?  Because I had purchased those investment properties (pre-2006) on sound fundamentals I weathered the storm.  Sure, the value of the rental went down but the rents actually went up!!!  So my PITI remained mostly constant (taxes fluctuated a little) but my rents went up. I’ll take that over what just happened to my stocks and mutual funds this week.

Yes, I own investment property.  Yes, I’ll buy another one or two. Yes, I’ll still continue to have monies in the stock market as well.  And yes, I’ll continue to grow my real estate business.  I believe in having as many income streams as I can so that when I do retire I won’t have to worry about it the entire time.

I’m building a “Retirement worth having” and I can help to counsel you to do the same where it involves residential investment property in Kansas City.

Chris Lengquist
Ad Astra Realty, Inc


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2 responses to “Rental Property For Retirement

  1. I agree! Rental property is the best investment for retirement. The ability to lock a monthly cash flow is highly beneficial. Thank you for sharing your experiences and thoughts. If I may ask what other income streams can one invest in in order to prepare himself for retirement?


  2. Alden, I can only speak from my experience. I own rental property. Real estate is what I know. Now, in addition I max out my Traditional IRA each year and my wife maxes out a Roth IRA. In those we have a combination of stocks and mutual funds. My wife also has a state required (through her job) KPERs plan that she has to contribute to, as well.

    And lastly, owning my own business allows me to continue to grow and at “retirement” (however that may look for me) I can either have good help and keep cash flow or I can sell and take a lump sum.

    So, real estate, stocks/mutual funds and my own business. That’s my path. One I highly recommend. Though owning your own business can take a lot, and I mean a lot, of work and patience.

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