Looking for additional income in retirement? Consider a multi-family residence


Louisville, KY—September 7, 2016—As multiple generations increasingly focus their attention on what they’ll need to retire comfortably, many are exploring a variety of avenues to generate income in addition to the amount they’ll derive from retirement savings. “Should you invest in a multi-family residence? Our answer is always a resounding yes—if it fits your retirement profile,” said Carla Dearing, CEO of SUM180, an online financial planning service designed to be simple and affordable.

“Investing in a multi-family residence to augment income in retirement is a very smart move for a number of reasons, chief among these is the quality of life a steady stream of income from a rental can provide,” Carla continued.

Carla offers the following three reasons why a multi-family residence is a smart investment:

  1. In general, the income support you receive from a rental property is greater than the interest income from investing the same amount in the stock market over the next few years.
  2. It’s particularly smart to have a rental property that is also your primary residence because a portion of your primary home mortgage is tax deductible—this is a benefit that doesn’t apply to a separate rental property.
  3. Putting some or all of the rental income into mortgage prepayments before retirement means having little or no mortgage to worry about when you do retire.

“While purchasing a multi-family residence is a smart investment, it’s important to consider all the costs and headaches associated with being a landlord so you can determine whether this investment is for you,” Carla said.

Following are five items Carla suggests prospective buyers of a multi-residence property consider:

  1. Don’t make a purchase assuming you will earn a certain amount in rent later. You need to assess both the home purchase and its rental prospects at the same time.
  2. Make sure you have current, reliable information about the rental rates in the specific area where you are considering buying. Your realtor can help you evaluate the investment by creating a detailed model for the rental (including management costs) based on the specifics of the property and area.
  3. Expect to pay taxes on the rental income, even though it comes from renting part of your primary residence. The taxes are the same as if it were a completely independent property.
  4. Consider hiring a management company to manage and maintain the rental on your behalf. There’s a cost involved, of course, but you will be freed from the day-to-day headaches of being a landlord. Your time will be your own and you’ll be free to work and travel without worry.
  5. When considering properties, you may want to ask your realtor to show you only those that are move-in ready. Homes that require construction or renovation can easily turn into a time suck and money pit – often costing twice what you estimate up front. Not a smart investment or a relaxing way to spend your retirement!

About SUM180
SUM180 is an online financial planning service designed to make financial planning simple and affordable, providing a radical alternative to current financial advisory offerings.

Specifically, SUM180 is differentiated in the following ways:

  • SUM180 meets individuals where they are. SUM180 plans are personalized to help individuals wherever they are right now on their financial journey; whether they’re just beginning, starting over or well on their way.
  • SUM180 plans are simple. Clients need only focus on just three of their most important next steps at any given time. This approach is empowering for most, but especially for those who have been “tuned out” of their financial picture for a period of time.
  • SUM180 doesn’t try to give clients a degree in finance. SUM180 clients don’t need to become financial experts to meet their financial goals. SUM180 provides the tools they need, without overwhelming them with the details they don’t need.
  • SUM180 offers a community for users, unfiltered. SUM180’s community forum allows users to support one another in their plans.
  • SUM180 serves; never sells. Earning and keeping client trust is SUM180’s highest priority. SUM180 never makes money based on the advice provided.

Additional information about SUM180 may be found at https://sum180.com/.

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Robin Schoen
Robin Schoen Public Relations
215.504.2122 office
215.595.7542 mobile



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