Creating Wealth With Rental Homes
After most families essential expenses are met there is usually very little discretionary cash remaining for those special items people want to save for.
A relatively small investment in a rental home can control a good home that will easily rent, generate positive cash flows and pay for itself. The borrowed funds create leverage that earn a return on the total value of the home and not just the amount of cash you have invested.
The strategy is simple. Find a slightly below average priced home that will rent well. It will appeal to a larger group of people while it's rented and when it's ready to be sold.
Rent the home and maintain its condition over the years. As the loan amortizes and the value increases, the equity will grow. When your student is ready to start college, you'll actually have several options.
You can sell the property; pay the tax on the gain at the reduced capital gains rate and fund the education. Another option would be to refinance and take the proceeds to pay for the tuition. This would allow you to continue to own the asset but would free your equity and under current tax laws is a non-taxable event.
Regardless of whether you're trying to plan for your children's education or your own retirement, rental property offers many solid investment opportunities. Contact me if you want more information on homes in the Bethany Beach or Fenwick Island resort area or sign up to receive free, no obligation updates as new listings hit the market at www.ListingUpdate365.com.
Audrey & Frank Serio, CRS
Bethany Beach DE
On May 26th the Town of Fenwick Island and Mayor Audrey Serio formally opened the new public safety building. The dedication began with the Presentation of the Colors by the Marine Corps League First State Detachment of Delaware and followed by the Pledge of Allegiance.
