Let Your Tenants Send Your Kids to College
Have you thought about investing in Orlando rental property? Orlando property management team, Morgan Property Solutions, discusses how investing in Orlando real estate can benefit you and your loved one’s future.
Most people have lots of things to save for but not always enough discretionary income after the family essentials have been met.
A relatively small investment in a rental property can control a good home that will easily rent, generate positive cash flows and pay for itself. The borrowed funds create leverage that earn a return on the total value of the home and not just the amount of cash you have invested.
The strategy is simple. Find a slightly below average priced home that will rent well. It will appeal to a larger group of people while it’s rented and when it’s ready to be sold.
Rent the home and maintain its condition over the years. As the loan amortizes and the value increases, the equity will grow. When your student is ready to start college, you’ll actually have several options.
You can sell the orlando property; pay the tax on the gain at the reduced capital gains rate and fund the education. Another option would be to refinance and take the proceeds to pay for the tuition. This would allow you to continue to own the asset but would free your equity and under current tax laws is a non-taxable event.
Regardless of whether you’re trying to plan for your children’s education or your own retirement, Orlando real estate offers many solid investment opportunities. Contact us if you want more information. Visit orlando property management for more professional help and advice.