How You Can Use Real Estate To Fund Your Retirement - Part 2

2006-08-23

Return to Part 1 of How You Can Use Real Estate To Fund Your Retirement

Another real estate retirement plan that most people are not familiar with is the 5-3-5-15 real estate investment. Some investors have said that this is the most simple real estate retirement plan that most people will never use. With this plan, an investor will purchase "five" properties, and each of them will have "three" bedrooms. They must all be within five miles of your residence. You will need to hold all the properties for "15" years before you retire. Picking properties with three bedrooms will allow you to sell or rent them at the highest price later, and having these properties will allow you to earn over $7,000 per month in residual income. The hardest part about this plan is finding the properties. However, it can be a powerful investment if you use it.

Another real estate investing technique you can use to fund your retirement is to move out of your home into a smaller home and put up your original home for rent. If you set up your mortgage when you were young, and made payments on it consistently, the home should be paid off by the time you retire. While most people choose to remain in their homes once they reach retirement, you will still have to pay property taxes, even if the house is paid off. If you move into a smaller home and rent out your original home, you can set the prices to the point where the monthly payments for your new home are covered, and the property taxes could be covered as well. In order for this technique to work, you must set the price correctly.

The amount that you charge your tenants monthly must be able to cover the the monthly payments for your new home. The best way to succeed with real estate is to start while you're young. When you purchase your home, you should look for alternative methods that are different from what the general population are using. It is important to make sure your money is working for you. Once you get to the point where your money is working for you, this will be a sign that you are financially independent.

Related Articles:
» Investing in Single Family Homes
» Making Your Offer to Motivated Sellers
» Why Invest In Real Estate

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