After I got my first source of steady income at 22 I kept thinking "Why am I giving my money away to rent when I could have a house paid off by 50"? I pictured what I'd do in retirement, take my suped-up golf cart to the course and then head to the store for groceries. I had to make sure there were a couple of restaurants that were in walking distance too. I even wanted to be close to a hospital in case I got hurt. When I found my checklist home I bought it, not with my father not with a spouse all alone as a single woman at 23. I lived in it for a year before I was offered a job in San Francisco, then I ended up turning it into a rental down the line.
As millennials, my husband and I are looking to purchase another rental property and my mindset is still the same. If we can start purchasing rental properties now they should be paid off by the time we need retirement income. We don't have pensions and while we are paying into social security "full retirement age" will most likely be pushed back to age 70.
Why is passive income through rentals so attractive? Here are my top 4 reasons.
When evaluating properties not all are created equal and realistically you should have a property manager helping you along the way. But if you are able to start now you could have multiple properties paid outright to improve your income stream in retirement. Now start asking a professional if you might fit your retirement plan.