Retire Early with Real Estate (You'll Be Shocked)



Retire Early with Real Estate (You’ll Be Shocked)

It can take a long time to become financially independent and retire early if you’re saving a portion of your income and investing into something that provides only average returns. Earning a 10% annual return isn’t going to help you build wealth quickly, especially when factoring in inflation. On the other hand, investing in real estate could provide you the ability to retire at a comparatively younger age. By using some creative strategies that allow you to earn maximum cash flow and build significant equity with your purchase, you could retire in less than ten years as opposed to a more typical 40 year timeline. One of the many benefits of investing in property is that it’s possible to receive healthy cash flow in addition to appreciating property values. Contrary to popular belief, you don’t need millions of dollars in real estate to make a livable income. In fact, it’s entirely possible to retire with just one single unit which we will discuss towards the end.

28 comments

  1. I used to think rental property was an excellent investment. I still do but I am more aware of potential downside. I know 3 people very well and they have individually have invested in rental properties for 20 – 35 years. It's great until you get that bad tenant. It's a nightmare evicting them, can take months, and the tenant can do a lot of damage. What about the past few years with the pandemic? Renters even if still employed could stop paying rent in the area where I live, but my 3 aforementioned friends still had to pay the mortgages.

  2. The stock market is still a fantastic tool for building wealth, however, so it's wise to consider investing even if you don't have much money to spare

  3. Not sure which place in the US is selling a duplex for $388,000 while simultaneously having an average rent for a 2 bedroom for $1900. That ratio is way out of wack.

  4. sounds easy and lucrative on paper. but in reality it's not that simple. my friend owned a rental home in CA, and the tenant declared bankruptcy. and with CA laws, if the tenant declares bankruptcy, landlord cannot evict them. what a massive headache that caused for the landlord.

  5. Affording the taxes on a house after 30 years can become a problem because taxes are based off of home value. Buy a house at $250,000 and in 30 years that house might be worth $2,000,000. So I have decided to invest some of my equity so I can use that investment to pay the taxes.

    Putting that money into another rental house isn’t a bad idea. But I’m doing it with the stock market. Here is my plan.

    Wait until I have 50% equity in my house
    Then increase the loan to 70% and take that 20% as cash.
    That 20% cash invested into the stock market over 30 years will average a 7% annual return.
    After 30 years you should own the house. The growth on that investment will be enough to pay your property taxes forever.

  6. This assumes good tenants in a landlord friendly area. Bad tenants in a landlord unfriendly area can easily cause you to miss out on many month worth of rental income, and have far greater repair bills. This makes having only two properties very risky, like only investing in a couple stocks. You'll likely want to have a number of rentals in order to be able to absorb the blow of a nightmare tenant.

  7. 10% of the property price per month… is this real in America ? That’s a crazily high figure! I live in uk and my property is not even 0.5% a month.

  8. At 8:19 you say, “A mortgage is typically a very low-interest loan.” And at that time, the image on the screen says, “1. Mortgages are low interest loans."

    That is not true. A mortgage is not a loan.

    The loan is a loan, and the mortgage is a piece of paper the borrower signs, which gives the lender the right to foreclose if the borrower fails to make the payments.

  9. SAVING FOR A GOOD INVESTMENT IS THE BEGINNING OF MAKING MILLIONS. I ALWAYS TOLD MYSELF

    I DON'T NEED A NEW MASERATI OR AN EXPENSIVE VACATION NOW. THAT SINGLE MINDSET

    HELPED ME TO MAKE MORE MONEY INVESTING. I MAKE STEADY WEEKLY PROFIT BY

    INVESTING THROUGH MY PORTFOLIO MANAGER, SUZANNE STEPHENS ELLIS.

    IT IS BEETER TO HAVE MORE THAN ONE GOOD SOURCE OF INCOME.

  10. In many real estate markets, you'll find that the annual rent/price < 5.5%. In this environment, one is gambling that appreciation will make the investment pay off. Compared to the stock market, this seems risky, especially in today's markets.

  11. It was not mentioned here that the rental income also needs to be taxed or filed as an income tax so that will also be deducted from your rental income together with other expenses.

  12. This is only possible where property is cheap. Try to do this in New York, LA, Vancouver, Sydney, Auckland NZ.

  13. I personally think real estate is one of the best investments you can make, but accounting for appreciation and loan repayment on a long term investment like a rental property as anything other than change in net worth has always seemed somewhat misleading to me.

  14. Why is property so cheap in the US ?? 388k would probably get you a 1bed room 50sqm apartment in Melbourne.

  15. How do you calculate cash on cash return on a down payment with your per month cash flow?

  16. Sadly the cost of living is becoming very high just so the price of renting has gone up faster than inflation. My heart goes out to anyone like myself retiring this year and as such I need help on how to make a good return off my 400k portfolio . Hope to get the best replies. God bless!

  17. Real estate is not for most people. You have to be able to manage it. If 25% of the population is using this method to earn income, then whose going to be left to rent? It's like we'll have too many lions and no sheep.

  18. My early retirement investing in the stocks market has been the best decision I've made in my life and today I'm really enjoying life. I just bought my second home 2 months ago.

  19. Calculated this in my country and basically it will take 30+ years before you get any money back actually lol

  20. It ends up being less profitable than you calculate some times. I've seen a friend that almost filed bankruptcy due to failure to be a landlord.

  21. Ummm, we all know property is a great investment, but the vast majority of us cant afford property mate. This isnt like some special secret

  22. A duplex sounds good, or having the front 3bed – 2 bath house rented out while I'm in the converted unit in back

  23. When it comes to the world of investing,most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidance

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