Learn to Gain Your Rental Income that Equals Early Retirement by James Klobasa

Sadly, retirement is a little harder to achieve for low to moderate incomers than it was just 10 years ago. This is because many companies are lowering their contributions to retirement programs and, in some cases, are doing away with retirement benefits altogether. This can make it almost impossible for families without a great deal of expendable income to save for a comfortable retirement. And if you're among the younger population, you can't even begin to draw Social Security until you're 75 years old!

Sounds bleak, doesn't it? But it doesn't have to be. What if I told you that you could save for retirement without dipping into your current income and may even be able to retire decades earlier than you had planned? The truth is that you can provide a stable, reliable income for retirement by investing in rental properties.

Even if your means are low, it is possible to acquire a rental property every three to five years. Here's how: If you own your own home, you have likely built up some equity that you could borrow against to purchase your first rental property. But don't tap into your equity through a second mortgage, refinance instead. The whole point here is to not create another payment. If you don't own your own home, you can purchase a low-end, low-cost home that you can live in for a couple of years, pay off and fix up to become a rental property when you purchase another home.

Look for undervalued homes that need work. You don't need to purchase high-end homes. By investing your money into rental properties that are inexpensive, you can generate more rental income in a shorter amount of time.

Once you have a rental property that is free and clear of a mortgage, you are well on your way. After setting aside a percentage of your rental income for repairs, invest the rest into short-term, interest-bearing accounts. Do not let it be absorbed into your household income. Pretend that it doesn't even exist. By investing your money instead of spending it, you will be able to purchase a second rental property free and clear within a few years.

Now all you need to do is figure up how much monthly rental income you will need to generate to provide a comfortable retirement. Be sure to allow for instances where a rental property may remain empty for a period of time or need major repairs. Work toward acquiring the necessary amount of properties and watch your retirement as it becomes more of a reality every day. You never know, you may retire early by investing in rental properties now.

Author Resource: James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can make that choice. Learn at The Real Investor

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