If you're a retiree looking for a promising source of supplemental income besides bonds and the stock market, look into real estate investments. Check out the following tips to help you in your efforts to build a sound retirement portfolio: Assessing Your Goals Your first step should always be defining goals. You can rely on solid, consistent, and long-term income from rental real estate, but you have to do some work. Are you ready to research on good properties in good locations? Are you prepared to play with numbers while calculating financial prospects? Can you handle property management, which could include painting walls, electrical wiring and cleaning carpets? If not, you can always hire another person or a company perhaps. Knowing the Neighborhood You've likely heard of the old maximum about what drives a real estate business to success:location. So if you're purchasing a property in a certain area, you need to know what's in there for you. Does it give any particular advantage, such as close proximity to a public transport station or perhaps a magnificent view of the cityscape? What zoning laws are there to observe? Things like these will paint you a good picture of the viability of the rental market in that location. Please take some time and visit vimeo for Jody Kriss. Going Local You'll probably agree that your own neighborhood is the neighborhood that you know the most about. Remember, it would be much harder for you to do your job as a landlord if your rental property is located too far. Again, you can hire a manager, but it would be ideal for you as the owner to maintain a property that stays within your reach. One-room Condominiums Besides vacation properties, there is another very lucrative spot in the rental market that is focused on single people like divorcees (specifically middle-age), widowed retirees, and young professionals:one-room condominiums. These individuals would typically be uninterested in larger properties. Single-bedroom condos offer them the best value, and are even way more convenient to manage. You can click here to get started. Finding a Good Deal Purchasing a rental property at a reasonable price is given, but what is a reasonable price anyway? Generally, a good price for a rental property is about twelve times the amount it makes in annual rent. However, it's possible to get nine or ten times the annual rent today. As expected, there will be variations, depending on the property's type, location, and appreciation prospects. Note though that there's no pressure for you to make a purchase. If you do your homework, it will be easy to know how much your rental income per month would be. Read more about real estate investing at http://www.huffingtonpost.com/news/real-estate-investing/. Maintenance Fund Finally, as a landlord, you need to have some cash reserved for the inevitable costs, such as a broken dishwasher, roof leaks, and even the likelihood that your unit will be vacant for some periods.
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