Reported by the American Association of Realtors, the average U S citizens invest 7 houses throughout their life. Personally, those are 7 houses that we should hold onto for the rest of our lives, to come up with monthly revenue and long-term financial security for our families.

The typical method that we follow is to sell the home that we dwell in and to use the funds from the sale to purchase a brand new house. What I recommend is to utilize the latest process. If we twist the old procedure just a bit, it may end up in a tremendous difference in our net worth and our economic security.

I suggest that besides selling your home, just refinance it, and use the cash from the refinance as an installment on your next house. Now, you have possession of two houses and you can just turn your old home right into a rental house. It’s almost as easy as 1 2 3.

The 3 steps to turn your home into a rental house

1.) Refinance your residence.

2.) Make use of the refinance money as a down payment to purchase a brand new house.

3.) Move into the new house and rent out the old house.

The two instant advantages of turning your home into a rental house

1. You have the most current source of income flowing in, in the form of rental checks. These proceeds presents a new layer of security as it will not rely upon you working regular hours, but it continues to pour even though you lose your regular employment.

2. Formerly, you had only one house, which was increasing in value an average of 5% each year. For instance, a $200,000 house would increase in value to $300,000 over 10 years, for an income of $100,000. If you own two houses, your profit would augment to $200,000 in ten years.

Like having an extra retirement fund without retiring – only better!

Having rental houses far exceeds the benefit of the pension that you receive from the job. I worked for the state of Arizona for 13 years, and I will sooner or later get a retirement fund of around $1,000 a month. But guess what? Each year the value of my annuity will decrease since it will not be tied to inflation. So, after 10 years, I’ll still receive $1,000 a month but by reason of inflation, it could be in reality only worth $100 dollars a month because the cost of my groceries, my clothes, health care, and other costs have all gone up each year.

Rental houses provide the best pension. If I buy $1,000 a month in rent income, it not only keeps up with inflation, nonetheless it exceeds inflation. Which pension program would your rather have? One, which increases in value with the passing years, or one that lessening in worth?

Why didn’t I turn my home into a rental house a long time ago?

Even if you purchase just one rental property throughout the course of your whole life, your economic picture will soon get better. You will wonder, as I did, “why didn’t I do this a very long time ago?

Another great article by Toronto Condominiums Unique version for reprint here: Steps And Advantages Of Converting Your House Into A Rental Property.