According to the 2018 National Association of REALTORS® Home Buyer and Seller Generational Trends, 54 percent of sellers between the ages of 25 and 52 years chose to sell their home to move up in house. In most cases, the sale of their previous home was necessary as the money earned from that sale was a substantial part of the down payment toward their next home. But what if these homeowners had decided to rent out their home instead of selling it? Could that have an exponential affect on their wealth-building potential? At Real Property Management, one of the leading property management companies Hamden, CT, has to offer, we understand that every financial investment is aimed at one goal: maximizing your quality of life. Whether it’s in the present for your growing family or in anticipation of your future retirement, real estate investing is a vital part of your financial planning.
A Different Approach to Building Wealth
For many, the thought of building a collection of rentals for the purpose of developing your investment portfolio doesn’t come until you’re well into your working years. But if you consider that your early-30s to mid-50s are the prime of your earning years, the choice to actively work toward building wealth in anticipation of future retirement is a prudent one. Dave Van Horn, President at PPR The Note Co. and contributing writer on BiggerPockets, shares his experience expanding his real estate investment portfolio. He started off by saving up money for a home early on and chose to purchase a duplex, instead of a single-family home, and lived in one unit while renting out the other. When it was time for him to move onto the next property, he kept it as a rental instead of selling it. He continued to do that with his next two properties over the following 15 years. Reflecting on his experience, Van Horn writes:
“Sure, it took a little more time to save money between moving up with my primary residences, but it was well worth the wait. My [rental] properties enabled me to build additional wealth, and they’re almost paid off now. They not only give me depreciation and write-offs to offset earned income, but they can pay for things like college and weddings, and they provide a nice, passive cash flow in retirement. As you can see, this has been one of the best investing strategies that I’ve taken in my entire life. It makes you wonder why this strategy is not taught more or is not more popular with young people starting out.”
Making the leap from strictly being a homeowner to owning investment properties can feel daunting. However, taking Van Horn’s approach offers the kind of transition that is less intimidating with the right kind of guidance. At Real Property Management, one of the most trusted property management companies Hamden, CT, has to offer, we are committed to walking our clients through this transition. With more than 25 years of experience in the industry, we know how to coach you on what to expect and how to maximize your rental investment potential.
Tips for Keeping and Renting Out Your Primary Residence
You may be saying to yourself, “I’m ready to rent my home in Hamden but how can I do that and have enough for my next property?” There are several ways you can save money for purchasing a new home when you’re ready to rent out your first home. Many mortgage loans offer lower down payment requirements and more favorable interest rates for the purchase of owner-occupied homes. You should also research what incentive programs that Connecticut Housing Finance Authority has to offer.
Keep in mind that you should always purchase properties that you know you will be able to rent out for more than the mortgage payment. In fact, this is one of the most important piece of advice you’ll receive. If you are unsure of a property’s rental rate potential, it is best to consult with reputable property management companies. Hamden, CT, investors found more success renting out their home when they worked with a company like Real Property Management who offer tools like local rent rate analysis and budget building for your new rental. The true key to success here is to be mindful throughout the entire process. Seeking out the advice of professionals with property management experience is a sure way to win as a new real estate investor.
Working with the Best Property Management Companies Hamden, CT, Has to Offer
Now that you’ve said, “I’m ready to rent my home in Hamden and build wealth in the process,” it’s time to decide if you’re ready to partner with a professional property management team. As a nationwide company, Real Property Management has over 275 offices nationwide, we work hard to redefine the Southern Connecticut property management industry. Our services also include:
- Extensive Local Experience
- Comprehensive Marketing and Leasing Strategies to Fill Your Rental Quickly
- Inside and Outside Property Inspections
- Risk Mitigation and Eviction Services
- Affordable Remodeling Services
- Independent CPA Audits on Owner Trust Accounts
- Easy to Understand Cost-Effective Pricing with No Hidden Fees
Everything you need to be a successful real estate investor is at your fingertips from one of the most trusted property management companies Hamden, CT has to offer. We also offer a library of free video resources and a friendly customer service team to help answer all of your questions. We want to help you build lucrative rental properties and achieve your financial goals. Call us today!