Become a Landlord during Retirement? Or Before You Retire? You Could Do Both

By Brendan Hughes3 Comments

Before investing in real estate and becoming a landlord during retirement, investors should evaluate whether real estate is the right approach for them. Before jumping in, careful consideration should be undertaken, especially if becoming a landlord for the first time is during retirement.

Marketwatch columnist Dana Anspach reminds investors of the many factors involved in being a landlord in her recent column “Should you be a Landlord in Retirement?”

Knowing all of the potential expenses related to investment properties (including insurance, maintenance, leasing) is an important factor, as well as keeping proper reserves in place to cover potential costs when properties are vacant.

Often investors overlook many of the costs of being a landlord. The potential benefits of investing in real estate are more obvious: cash flow from rent and appreciation of property values.

Prepare for retirement by investing in real estate
The MarketWatch article focuses on being a landlord in retirement, but it’s possible to save for retirement before retiring by investing in real estate with tax-advantage accounts such as a self-directed IRA. Self-directed IRAs allow you to invest in real estate and possibly benefit from the tax-advantages the accounts offer.

The same considerations about whether real estate investing is the right fit for you should be reviewed with a tax or financial professional whether you plan to invest before or during retirement.

Click below to get more information about self-directed IRAs.