Real Estate With Dan | Technology Driven

Trusted Real Estate Advisor | Technology Driven

  • Home
  • Contact
  • About
  • Privacy Policy
  • Sitemap
You are here: Home / Real Estate News / Rental Property Income Finance Retirement

Rental Property Income Finance Retirement

February 26, 2016 By Dan Leave a Comment

rental property income

According to Robert Berger of U.S. News and World Report, rental properties can provide a meaningful source of consistent income as part of your retirement planning and portfolio. He claims, “Buying a property or two could provide enough income to allow you to retire sooner.” However, you’ll need to ensure your investment properties will provide steady, positive cash flow throughout your retired life. You don’t want a rental property to become a drain on your retirement resources! Here are some things to consider before diversifying your retirement portfolio with investment properties:

Explore your Financing Options. In a post-financial crisis world, those with good credit and a steady work history can purchase rental properties through a variety of finance vehicles. One should consider the use of a portfolio lender (like Colony American Finance). These lenders have greater flexibility and can act outside the terms imposed by Fannie Mae or Freddie Mac. That being said, lending requirements are understandably stricter than they have been in the past. Lenders are now requiring increased down payments (25% or more) and more stringent credit and liquidity profiles.

Get Familiar with the Tax Implications. Rental properties offer some valuable tax benefits. To name a few, you can claim depreciation on rental properties (but not the land), reducing your tax burden year by year. Depreciation, along with the interest expense on a mortgage, may enable you to minimize taxes for some time. Keep in mind, however, that you’ll have to deal with depreciation recapture down the road If and when you sell the rental. In many cases, rental properties operate at a tax loss. One of the hidden benefits of being a landlord is that these “losses” can be deducted on your tax returns (up to $25,000 a year). There are some requirements that must be met, so be sure you understand the rules. The tax implications of owning rental properties can be beneficial, but are also complex. Seek out the help and advice of a tax professional before you delve into the world of residential rental investments…read more

Source: Rental Property Income Finance Retirement via @ProLandlord

Filed Under: Real Estate News Tagged With: Landlords, Property, property management, rental, Rental Property, tenant

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ABOUT ME

I’m a licensed Real Estate Broker/Investor with Jae Evans Real Estate located in Bellevue, WA and an Army veteran. I have over 18+ years of experience in the home purchase/sales and property leasing industry. During that time, I think that I've done just about everything in the Real Estate industry i.e.: flipping, wholesaling, etc. Read More…

PAGES

  • Privacy Policy
  • Sitemap
  • About
  • Contact

CATEGORIES

  • Real Estate News (46)

RECENT POSTS

  • National Housing Market Data
  • Website Page Speed Matters A lot
  • Down Payment Assistance
  • House Buying Process
  • Home
  • Privacy Policy
  • About
  • Contact

© 2022 | Real Estate With Dan | Lifestyle Upgrades using Income Producing Assets | Members Only Coming Soon