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Financial Freedom: Investing in Clovis Rental Properties for Early Retirement

Clovis Woman Saving Change in a Piggy BankBy investing in single-family rental properties, early retirement is not only within reach but also might be as easy as falling off a log. You might fail to get on the fast track to financial freedom if you have not given thought to use real estate as a retirement income strategy.

Obtaining marketable properties in Clovis and dealing with them efficiently can certainly come to be the most valuable piece of a retirement plan. Real estate is also a terrific way to diversify an investment portfolio, seeing to it that your entire retirement income is not shackled to a volatile stock market.

It is an established fact that some of the wealthiest people in the United States became affluent through real estate investing. And yet, advances in technology and new business models have given small investors the means to utilize the power of real estate investing for genuine financial freedom. Real estate normally offers more valuable annual returns than savings accounts or even 401k plans and is usually much more stable than stock and bonds. This indicates that by investing in Clovis rental properties, you are expanding your investment dollars through different means that you may have not considered previously.

A first-rate rental property ought to pay for itself over the life of the mortgage. Retaining a rental property costs an investor not much outside of the down payment for the reason that the rental payments are used to fulfill part or all of the mortgage and other fees. Extra rental income can be either made to replenish those funds or re-invested to grow a retirement fund even more. Rental income can continue indefinitely as soon as the mortgage is paid in its entirety. It’s characteristic for rental rates to surge up regularly once a year, which would really create an income that keeps pace with inflation.

In the meantime, well-maintained property is sure to continue to appreciate. This signifies that should you opt to sell, the property should fetch a lump sum payment more than the original purchase price. Assuming a 3.4% increase each year, a property would roughly double in value over 30 years, a sum that could then be converted into an annuity and provide an ongoing monthly income for another 30 years.

Think about this plain and simple case: an investor buys a median-priced single-family home and puts 20% down. Monthly expenses would include average maintenance costs, insurance, property management fees, and property taxes. Monthly income would equal the market rental rate for the property. In today’s dollars, the monthly expenses and rental income from a carefully chosen rental property would balance each other out.

As rental rates go up the following year, the property would go from breaking even to positive cash flow, which would only increase in succeeding years. As expected, rental property investment can actually pay for itself over the life of the mortgage and become the start of on-going retirement income after that time.

To realize actual financial freedom, it is generally encouraged to procure and run more than just one rental property. For most rental property owners, there are alternatives to leverage the equity in your existing rentals to get your desired outcome. Adding investment properties can help you retire earlier than you thought possible and, at the same time, increase your retirement income once you do. There are several loan companies out there who will work side by side with real estate investors that desire to own many rental properties. A lot of these companies offer quality services for investors of all sizes.

Because of the effort and time needed to oversee a rental property, many people find themselves anxious about long term management. But that thinking is behind the times. At the present moment, Clovis rental property ownership can be hassle-free by hiring the best property management team available.

At Real Property Management Platinum, we search out and screen tenants, handle collections and bookkeeping and take care of maintenance and repair requests. We also help maximize your rental income with market assessments and by setting accurate rental rates, ensuring your rental property remains profitable and in good condition for years to come. Contact us online or call us at 559-324-9400 for any clarification.

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