There’s no reason why you need to wait until old age to retire. With the right financial strategy, you can put your cash into real estate investments that help to build a solid portfolio to support you for life. While some people want to work until the age of 65, many others are strategic with their finances so they can retire earlier in life.

Building an Income from Rental Properties

The real benefit of real estate investments is that you can enjoy the benefits of rental income. Each month, the money flows in without you working on the income daily. The right real estate strategy is a great way to ensure financial independence so that you can retire early.

Not only do you have the monthly cash flow from rent, but you also have the long-term benefits of building equity in these properties. The real estate market has stayed strong through various economic changes over the years. Over time, you pay down the mortgages – eventually owning a portfolio of assets. If you need an infusion of cash in retirement, then you can always sell one of the properties as-needed.

As you are building your portfolio, the numbers need to add up. Calculate passive income based on the money left over after you’ve collected rent, paid the mortgages, and set a bit of cash aside for repairs and renovations. When you have enough passive income to cover your personal expenses, then work becomes optional.

Benefits of Real Estate Investments for Retirement

Stocks and bonds are unpredictable. Many retirees have seen fluctuations in their portfolios as the markets continue moving up and down. Here are a few benefits you can expect if you decide to use real estate investments for your retirement strategy:

  • Ongoing Income: Good rental properties not only generate immediate income, but keep the money flowing in the future. You get a raise in passive income when the mortgage is paid.
  • Other People Pay the Mortgage: Good tenants send you a rental payment every month, which pays off your mortgage over time. You don’t have to come up with the cash to make these payments.
  • Increasing Investment: Inflation affects rental prices, which means that your investments will keep up with the increasing inflation over the years. On the other hand, other common types of real estate investments have a hard time keeping up with inflation.
  • Predictable ROI: Avoid the stock market gamble by putting your money into real estate. When you purchase a rental property, you can figure out the cash flow right away. Just make sure that you build in a buffer for repairs, such as failed appliances or renovations if needed.

Are you searching for the right real estate investments in the Atlanta area? DUFFY Realty is here to help! Schedule an appointment with one of our experienced agents to learn about your options: (678) 318-1700.