Are you having to relocate due to a job change? If you own your home, you may think you have to sell your old place to be able to buy a new one. But a wiser move may be to rent that house out instead. Here are some reasons.
A Great Investment
If you have equity built up in your old home, why not let someone else continue making the mortgage payments for you. The rent you receive from that house will likely be lower than its mortgage payment, and you can use the surplus to help pay off your new place. Pay off the equity on both places and own them outright even faster.
You may be concerned about the challenges of managing that home from a long distance, but using property management companies, such as property management for homeowners Cincinnati OH, is a great way to make sure your homes are properly managed.
Good Retirement Income
Don’t be one of those people who reach their golden years and can’t retire due to lack of income. With a rental house, you’ll have extra monthly cash to help you retire comfortably. Pay off both mortgages and that extra amount will give you the freedom to retire early if you so choose.
By being a real estate investor, you can take advantage of a ton of tax breaks, including interest on the mortgage, property taxes, professional fees, office space and advertising expenses. Be sure to keep detailed records and don’t be shy about hiring a CPA to help at tax time.
Properties tend to increase in value over time, and the cost of rent typically rises rather than falls. That’s good news for you. Owning a rental home means an inflation-proof source of income to help with costs and provide for security in your old age.