Today TaxMama hears from Gary in the TaxQuips Forum with a planning question. “We need advice on the logistics for purchasing a home to presently rent, with the intention of living in this home when we retire in a few years. We need more information on this topic to ensure we make wise decisions.”
David Toelkes, our real estate investment guru from South Carolina provides an extensive reply about things to consider when dealing with rental properties. Some of the tips he gives include:
1) Hiring a good property manager.
2) Watching the property cash flow carefully – rents vs. costs – until you retire.
3) Planning for the large expenditures – surprise repairs, etc.
4) A warning – your long-range plans might change. So, TaxMama® suggests you find a property that will still make sense as a rental, even if you don’t retire there.
TaxMama® adds a bit of advice about how to avoid using a property management firm, if you’d like to save that cost, without undue risk:
1) Take your time and screen applicants until you find a good, solid tenant.
2) Work with a local insurance agent/broker – and get their recommendations for repair and maintenance service providers (electrician, plumber, handyman, gardener, etc.)
Of course, once you know more about the questions you have, come on back and ask us. Team TaxMama® will be here to help!
And remember, you can find answers to all kinds of questions about real estate, and retirement planning and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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