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.
Ad Astra Realty, Inc