Everyone involved in real estate investing has one thing in common. No matter their background or nationality, they are all thinking about and building towards their future. They are planning for their retirement years. If this is you and you are using rental properties as a way to finance your retirement, a question you have probably asked yourself is, “How many rental properties do I need to retire?”
As always, the answer to this question isn’t black and white. It all comes down to the type of lifestyle you want to have in retirement and how much of that income will come from rental properties. Here is a quick breakdown.
4 Steps to Retiring with Rental Properties
Step 1: Have rental properties that people want to rent! Make your properties attractive and worthwhile to live in. Make sure the property is well taken care of. Have properties in desirable locations. Use credit reporting affiliate programs to help your tenants boost their credit score by reporting their rent to all 3 credit bureaus. Ongoing rent credit reporting is a strong draw for many tenants.
Step 2: Find out how many of these types of properties you need! How do you do this? You find out what your average cash flow is per rental. If you cash flow $300 after expenses per property, you can then determine how many of those properties you need to make up the amount of cash flow you want for retirement.
If you want $5100 of rental income from your properties to supplement your other retirement savings and investments, you simply do the math.
- 17 properties @ $300 per month = $5100
That means if you can accumulate 17 properties that average $300 per month in cash flow, you can use that income to retire. (This is meant to be a representation of the calculations and it is simplified. It does not include taxes, tax deductions, expenses or any other factors. Make sure to work these into your calculations as well.)
Step 3: Start building your investment property portfolio! Work towards this goal of yours by being strategic with your investments. If you can find a good property that has 6 rental units in it, you would be over 1/3 of the way to your goal with one property! There are many great resources available for starting small and how to grow from there.
Step 4: Treat your tenants right! Whether it is you or a property management company that interacts with them, let them know they are valued. Give them perks like ongoing rent credit reporting by using a credit reporting affiliate program. Create powerful and positive word of mouth by doing little things that make your tenants want to stay.
Now you have the basics to begin building your retirement through investment properties and rentals!
Why Ongoing Rent Credit Reporting is a Valued Perk for Tenants
Ongoing credit rent reporting gives tenants something that everyone wants. To boost their credit score! Not only does having a credit reporting affiliate program go a long way to help them boost their credit score, but it can also help them boost their credit score overnight! That’s right. Ongoing credit rent reporting helps tenants boost their credit score for doing what they were already doing… paying their rent on time.
Partner with CreditRentBoost.com for Ongoing Rent Credit Reporting
Give your tenants extra perks for living in your properties and protect yourself from late rental payments with a credit reporting affiliate program. Check out CreditRentBoost.com today to see how you can get started.