Building a Real Estate Investment Porfolio for Retirement

January 2, 2013

What is your new year resolution for 2013? Is building a real estate portfolio one of your financial objectives?

Buying real estate is particularly attractive to many investors these days. With higher capital gain expected, especially for stock investments, many investors turn to real estate for long term wealth accumulation. Real estate builds wealth through rental income and price appreciation. Investors can even delay capital gain tax using 1031 Exchange for like-kind assets. All expenses including mortgage interest, homeowner association fees, insurance, property tax, ongoing repair and maintenance costs are all deductible from rental income. With historical low interest rate and attractive housing prices, most properties recently acquired would be able to generate decent cash flow. Keep in mind that if properties are located in growing areas, rental income will increase steadily overtime, thus expanding your cash flow.

Investing in real estate is not just for the rich. If you are making $50,000 or more, have a steady job and a reasonable credit history, you should start thinking about buying your first property. Start with a home for yourself to live instead of renting. There are loan programs available for first time homebuyers with downpayment as low as 3.5% of the property value. You may qualify for VA loan with zero downpayment if you are a veteran. Then save up in the next 2+ years (hopefully sooner) for downpayment for your investment property. Lenders require 20% or more down payment for investment loans.

The Kirin Real Estate team can help you chart out a customized plan to turn your American Dream to a reality. Many of our investor buyers have been able to build their investment portfolio from zero to 2, 3 or even 4 properties in the last three years. This is not a get-rich-fast scheme. Instead the process is very systematic. It is very important to ensure that the properties are financially sustainable with good rentability and fixed mortgage payments. These investors do not flip properties which require much higher risk. Instead, the investors hold their properties for a long haul. Some keep the properties to build college fund, while others keep them to generate cash for retirement.

Feel free to contact us at for a private, no-risk, no-cost, consultation.

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