You’ve long understood the wealth-building power of real estate, but, until recently, the demands of family and career have made becoming an investor a non-feasible proposition. Now retired and “born again single”, you are considering buying and renting out (initially one, eventually a couple of other) modest residential properties in or near Indianapolis. Your one son is very handy, and you plan to hire him to work on renovations, which would help him out financially while he completes his “re-careering” education.
As an active 71 year old, your own plan is to continue living in your well-maintained home, which is now fully paid for and which you updated after the divorce. Your initial intention was to partially finance the first new purchase of rental property update through a bank loan. You have a nice portfolio, but enough of the investments are inside tax-deferred retirement accounts, so you’d need to take a home equity loan to start with.
Tapping your home equity rather than your portfolio makes sense, but it might be better to do that through a reverse mortgage on your primary residence, drawing down from an equity line of credit to finance your first investment in rental real estate. Your portfolio can remain intact, and there will be no monthly mortgage payments required. In fact, the unused portion of your equity will continue to be credited with growth (at the same rate as the interest being charged on the loan balance.)
Your home “wealth” can allow you to build wealth by owning and renting out investment property.
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here(and scroll down).
David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org | Equal Housing Lender