Retired for the past nine years, the two of you have found various ways to supplement your income, with your wife teaching dance at a local studio and you doing handyman work and assisting at a roofing company. You long ago made the decision to continue living in your home, which is fully paid for and in excellent repair. While you do each have an IRA rollover portfolio and also jointly held investments, you’ve recently been reading up on the advantages of investing in rental property. Your intent is not to keep “flipping” homes, but to find one or two modest houses that need some remodeling, improve the properties, then offer those for rent. You both know younger couples who would appreciate that type of home and who would make good tenants.
From your reading, you know that the IRS would allow you to deduct some of the costs of maintaining those properties, and your own handyman and roofing expertise will prove valuable. Long term, you see this plan as a way of diversifying your sources of income. You’ve not yet pinpointed a specific site, but you know that, tax-wise, you will be able to deduct, for tax purposes, the costs of insurance, maintenance, and physical wear-and-tear on properties you acquire. Meanwhile, the reality is that you don’t want to commit sufficient funds to purchase properties for cash; however, you expect to have little trouble in qualifying for mortgage funding.
Rather than incurring mortgage debt on rental properties, consider using the successful real estate “investment” you’ve already made – your own home equity. Using a reverse mortgage line of credit, you can fund the purchase of and the improvement of rental investment property. With no obligation to make regular payments* on the reverse mortgage loan, you’ll be using your existing housing wealth with the goal of increasing “housing wealth” through new real estate ownership.
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).
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. 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