Some things don’t change (Part 2)

Here are key factors for successfully turning your rental ownership into the financial bedrock of your retirement prosperity:

  • Own well-located homes, condos and apartments maintaining at least a 30% equity position.
  • Pay down loans to achieve this safe equity position as quickly as possible.
  • Repair and refurbish the property to maintain physical quality which attracts preferred renters that pay market rent
  • Carefully qualify applications from potential renters and retain quality residents by responding to legitimate service requests via a professional manager that keeps you buffered from the daily drama, personal liability and/or premature sale.
  • Keep good records to document expenditures and optimize your tax write-off.
  • Protect yourself with adequate insurance and control your liability with professional property management that inspects your property and respects your renters as customers.
  • Generally, rental property should be acquired, maintained, improved and held; never sold. Instead, periodically evaluate whether you should refinance existing property and purchase additional property but the end goal is rental ownership free of debt.
  • Don’t lose valuable equity to selling expenses. Rather, retire with tax-favored rental income and a reserve for contingencies.

Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability (Government Code Section 65583(c)(5)).

San Diego Metro Office
6398 Del Cerro Blvd., Ste 8.
San Diego, CA 92120
(619) 286-7600

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