How best can I replace the rental income I now receive once I sell the property?
March 10th, 2010 | 
Author: I’m about to sell a rental property on which I collect $1,200 per month (minus upkeep) because I’m moving out of state. I don’t want to buy another rental property but have become dependent on that income. I should receive $185,000 for the property. What is the best income producing investment I can make?
Posted in Rental Properties
You could look into buying someones personally held mortgage. You can find people that have them by putting an ad in the news paper stating that you buy mortgages.The advantages of doing this instead of getting stocks or bonds is that your return will be around 12-15 %, and there is no upkeep on the property and no insurance. If the owners default on the payments to you you can foreclose take the property and have a property to sell and reinvest in more paper/mortgages.
I’d check with a financial advisor/planner. Most have the software to tell you what amount of income you can expect from an investment over time and at a conservative interest rate.
If you want to shop on your own before meeting with an advisor, check some investment web-sites. Most have calculators that can give you an idea so you go in with a bit more knowledge as to what you’re thinking of doing.
Good Luck!
Considering that you have been paying upkeep and property tax, you might be able to do as well as you have been by simply investing in a stock that pays a good dividend. Example would be the 7.5% paid by this company…
http://finance.yahoo.com/q?s=uht