Skip to Content

Financial Freedom: Investing in Sykesville Rental Properties for Early Retirement

Sykesville Woman Saving Change in a Piggy BankBy investing in single-family rental properties, early retirement is not only achievable but might even be a piece of cake. You’ll lose out on the fast track to financial freedom if you have not considered using real estate as part of your retirement income strategy.

Investing in marketable properties in Sykesville and administering them expertly can undoubtedly grow to be the most valuable slice of a retirement plan. Real estate is an additional way to diversify an investment portfolio. This ensures that your entire retirement income is not chained to a volatile stock market.

A lot of people are aware that some of the wealthiest people in the United States became like that through real estate investing. All the same, advances in technology and new business models have empowered even small investors to make use of the power of real estate investing for tangible financial freedom. Real estate usually puts forth more desirable annual returns than savings accounts or even 401k plans and is usually much more stable than stock and bonds. What this denotes is that by investing in Sykesville rental properties, you are multiplying your investment dollars in prospects you had not explored in before now.

An ideal rental property needs to pay itself off over the life of the mortgage. As long as the rental payments are utilized to settle part or all of the mortgage and other expenses, maintaining a rental property costs an investor hardly any outside of the down payment over the long run. Any overabundance of rental income in excess of the costs can be used to replenish those funds or re-invested to grow a retirement fund even more. Immediately after the mortgage has been paid in full, rental income can continue indefinitely. Typically, rental rates go up at a regular pace each year, which would for all practical purposes create an income that keeps pace with inflation.

Meanwhile, a well-maintained property is anticipated to continue to appreciate. This conveys the message that if the time comes to sell, the property should lead to a lump sum payment beyond 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.

Reflect on this easy to understand example: 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 went up the following year, the property would go from breaking even to positive cash flow, which would only increase in succeeding years. To this extent, rental property investment can indeed pay for itself over the life of the mortgage and then become the starting point of on-going retirement income.

To attain honest-to-goodness financial freedom, it is common to purchase and oversee more than one single rental property. For present-day rental property owners, there are other possibilities that you may use to leverage the equity in your existing rentals to do just that. 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 numerous banks out there who work together with real estate investors that are yearning to possess a myriad number of rental properties, many of whom offer first-rate services for investors of all sizes.

Over the long run, people are concerned about the amount of time and effort required to manage a rental property. But that is an outdated way of imagining how to invest in real estate. Right now, Sykesville rental property ownership can be hassle-free by hiring the best property management team available.

At Real Property Management Essentials, we find 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 410-832-3138 to find out more.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details