Quote:
Originally Posted by Biggd
The same thing goes for business rentals. I was in business at 3 different locations for the past 33 years. The first location was privately held and the landlord kept the rent reasonable. The second location was a franchise and the rent went up 100% in ten years which no matter how good the location was the rent squashed any increase profits.
So after 20 years I finally bought my own property and spent the last 13 years with a fixed monthly mortgage.
March 1st I retired and leased the property out. Now I collect rent to subsidize my retirement.
My biggest mistake was not buying 30 years ago. The opportunities where there but I just didn't make the move.
I'm thankful I finally did because if I didn't I wouldn't have the extra income in retirement.
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The tough part is saving up for the huge down payments banks require for commercial or investment properties, while you are still young enough to take advantage of long term equity growth. One strategy is to buy an apartment building as your first home, and as owner occupied, you get favorable down payment/financing. If you get past image and drive a junker jalopy instead of leasing or financing a new car, you can be in a cash paying lifestyle very quickly. Wish I'd done that. I'm cash now, but didn't buy my first investment real estate until 1980. Sold that and bought a two family that now has no mortgage and makes a nice contribution to retirement cash flow.