Using Rental Real Estate to Fund Retirement

Real Estate
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Relying on social security, pensions and other government related programs to fund your retirement is a gamble these days.  Using rental real estate to build retirement income gives us the power to control our destiny and not be at the mercy of programs we have no say in.

Social Security and Medicare Funding Deficit

Let’s consider this  piece of data.  The U.S. Treasury is required by statute to release an annual statement.  It’s our opportunity to dig in a see what the financials really look like.

In the 2016 annual report, one table jumped out at me.  The net present value of the funding liability over the next 75 years for Social Security and Medicare is at a $47.5 trillion deficit compared to the net present value of the tax revenues designated for that program.

Do you see an issue here?

I have about 25 years before I can collect social security.  I do not feel comfortable relying on that money, nor the estimated payout I am to receive.  Generating income elsewhere after I am finished working is a must.

Rental Real Estate

Rental properties provide a great opportunity to help fund your retirement.

Let me give you a couple quick reasons why:

  1. You are producing current cash flow while having the mortgage paid off by your tenants as you hold it throughout your working years.
  2. That current cash flow can be invested in other income producing assets. Thus, helping you diversify and build other streams of income.
  3. Once the property is paid off, your cash flow from the property will jump exponentially as that mortgage payment now becomes income too.

Buying Right

Of course buying a bad deal will negate nearly all of the benefits listed above.  However, successfully acquiring and holding rental property doesn’t need to be difficult.  Just be sure to follow some basic principles and essentially, “Buy Right.”

Take My Lessons For Yourself

Five years ago I knew nothing about rental property investing. Nowadays I hold several properties that produce cash flow as I build my way toward retirement.

I have shared and continue to share my journey.  The mistakes, lessons and epiphanies are all on my blog and in my book.  Feel free to use what I have learned!


If you enjoy my posts and property investing tips than you will love the new book:

ScaredyCatGuide – Investing in Rental Properties

I literally walk you step-by-step through finding, buying and renting out a rental property.  The book is your personal mentor!

Don’t forget to download the property calculator so you can run the numbers and buy right.

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