I think it’s safe to say that we’d all like to be in a situation to retire some day. And that most of us would like that day to come sooner, rather than later. There are a number of ways to do this, but ultimately the smart money is on multiple streams of income.

And by this, I mean, having several different places where you will be making money. This allows for more income in retirement, but also allows you to offset an income source, should one source of income go down (think all of your eggs in one basket). For most, these streams of income are a pension (at least, for those who worked more than 20 years ago), social security, and an IRA or 401k. But another source of income many of my wealthiest clients establish comes from rental properties with a low rate mortgage.

You can buy houses inexpensively – either because they need some work, they are outdated, or they are in areas that are less than desirable – and rent them. Now, you want to factor in any costs to do repair work if you decide to go this route, but generally you will be able to rent the property for more than a mortgage would cost, meaning instant cash flow. If you start at the right time and own a few rental properties, the income can offset your costs and allow you to leave your job in corporate America.

Then, when the property is paid off, the full amount of the rent comes to you as income. And if you ever have a need for quick cash, you can always sell the property, and keep whatever equity has accrued.

So if you have any interest in earning extra income through rental properties, contact me and I will go over your options. If you have anything to add about how to use rental income for early retirement, please leave a comment.