Are Rental Properties Right for You?
In this episode of Financial Clarity for Doctors, Corey and Rachelle tackle a question they get from a lot of clients – “Is it a good idea to get into rental properties?” As with everything in financial planning, the answer is, “It depends!” There are a few questions you can ask yourself to help you decide.
Listen Here!
When you are thinking about getting into rental properties, ask yourself:
- Am I okay with the additional risk?
- Likely taking on debt you will have to pay yourself if you can’t rent out your property.
- Being responsible for potentially large home repairs.
- If the value of the home declines, you may owe more than it is worth.
- Would the potential rental income of this property cover the costs of the mortgage, insurance, property management, taxes, and upkeep?
- How long do I want to rent out this property and what are the tax implications if I sell it?
- What else could I do with the down payment money instead of investing it in property? What am I giving up doing this?
- Additional retirement savings
- College savings
- Do I want to deal with renters?
There are lots of things to consider when you want to get into real estate. It is very important to run the numbers and see if it’s a good fit for your finances and for your personality. Real estate is not right for everyone. Listen to the full episode to learn more and hear about how real estate can complement your financial plan if you do decide it’s a good fit for you.
For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden;
Instagram: @CoreyJanoff and @VanderzandenRachelle;
and Twitter: @CoreyJanoffCFP and @RachelleFinance
Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.