Would your portfolio pass the diversity test? Most likely, you have a 401(k), a 403(b), a standard IRA, Roth IRA, Roth 401(k), SEP IRA, or Simple IRA. And, most likely, whichever one you have is invested in stocks. That’s fine, but it doesn’t go far enough.
When you are looking for your next investment vehicle, look beyond the stock and bond markets and consider rental houses.
“REAL ESTATE!” I can hear you scream already. Isn’t that what brought down the economy the last time?
The answer is “yes” and “no.” We could go into an entire explanation of greedy bankers and derivatives, etc., but that wouldn’t get us to the real point.
There is serious money to be made, even today, in the rental house market. Let’s face it, all of these people who lost their houses to foreclosure still need a place to live. And, all of these foreclosed houses are sitting there like big ugly warts on the banks’ financial statements.
The banks are practically paying investors to buy these houses with lower than ever interest rates and prices well below assessed value.
With a little research, you can buy rental houses, rent them out and have a nice cash flow. Even better, the tenants are the ones paying the mortgage. In the end, you will own a house, free and clear, that you can either sell or continue to rent and rake in even more bucks. You can even hire a property manager to take care of all of the details for you.
Don’t be the last one to jump on this lucrative bandwagon. While bargains are plentiful now, the best deals are being snapped up quickly. Take advantage of this opportunity to diversify your portfolio with rental houses before all of the good ones are gone.