Are you looking to exit your current job in the coming years? Then this could be the blog post that can help you achieve that very goal.
During any given year the amount of people that own more than one property has ranged anywhere from 2 – 5 million people (on the high end this accounts for about 5.6% of the total housing stock that is in existence).
Often the general outlook on owning multiple properties is viewed as a risk, but in reality, it is a pretty great way to keep your money relatively safe against inflation and taxes (holding the dollar can become costly).
I do not want to detract from the fact that there is an amount of risk involved when factoring outside circumstances (i.e. economic fallout from the global pandemic that halted almost every job market for months on end). In the moment, picking up a new mortgage during this period seemed extremely risky and many leading economic sources were predicting an instant housing market crash… well the exact opposite happened and most of the country saw a rise in prices by about 20%.
Putting aside all the “what ifs”, the goal of owning multiple properties is to generate a passive income that can be used to offset living expenses. Let’s assume that if your living expenses are $2500.00 monthly and you are able to bring in a cash flow of around $500.00 a month per rental property that you own, then you would only need 5 - 6 homes to break even if not be net positive in the long run (take the average price of a home at 250k and not only have you produced passive income but you have bumped your net worth to 1 mil or higher).
The even bigger piece to this is when the time comes that you want to cash out, if you have held the properties long enough to pay them off or gain enough appreciation. The options are pretty limitless to say the least.
I want to end this post where the next will begin, think this all sounds like it would take forever? Wait until I tell you about one of my past clients of which we will refer to as Mike… in fact all of my client references will be Mike and Mary.
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