62-year-old Couple with $2M in Real Estate Rentals — Should They Sell in Retirement or Keep the Passive Income!?

(don’t forget to checkout the video of this case study too)

💾 be sure to save for later 💾

⭐️ Here are the details ⭐️

✅ Tyler & Veronica are 62

✅ They want to retire at 67

✅️ Their Social Security Income will be $5,500/month

✅️ They have $400k in an IRA

✅️ Their retirement income goal is $18,000/month

✅️ They have 3 rental properties bringing in $8,000/month

⭐️ Real Estate Income Analysis ⭐️

Property 1 = $400,000 Equity

Cash flow = $14,000/year

Annual Income Rate = 3.5% per year👎🏻

Property 2 = $700,000 Equity

Cash flow = $42,000/year

Annual Income Rate = 6% per year 👍🏻

Property 3 = $900,000

Cash flow = $40,000/year

Annual Income Rate = 4.4% per year 👍🏻

Total Real Estate Income Rate = 4.8% per year on $2M

⭐️ Real Estate Recommendations ⭐️

Property 1 — SELL ❎

It’s underperforming as an income source.

Property 2 — KEEP ✅

6% annual income + wealth preservation for future tax-free wealth transfer.

Capital gains taxes can be eliminated at death (continues to appreciate between now and then).

Property 3 — ON THE BUBBLE ⚠️

It’s currently generating a 4.4% income which is decent.

We are going to raise rents to try to generate at least a 5% annual income.

This will give us another asset that will transfer favorably to our loved ones.

⭐️ IRA + Proceeds from Property 1 ⭐️

✅ Utilize the IRA for an additional source guaranteed income

✅ This allows us to spend money we DON’T want to leave behind (especially with new IRA inheritance laws)

✅ Combining the IRA and Property 1 into an indexed, income annuity will payout at a 10.9% on $800k total in 5 years!

⭐️ Final Retirement Results ⭐️

✅ $5,500/month from Social Security

✅ $7,247/month from IRA + Property 1 Sale

✅ Property 2 will continue bringing in $3,500/month

✅️ Property 3 will hopefully begin generating $3,750/month (at a 5% annually if rents are able to be raised)

This means the total annual income-to-equity ratio has increased to 7.2%‼️

Which is a 51% increase in the income payout percentage.

This preserves their best sources of passive income.

Leaving them almost $20,000/month in total retirement income…

AND allows them to leave $1.6M (or more) of Real Estate to their children without the big tax bill associated with retirement accounts. 🤯🤯🤯

Let’s chat 💬😎