Earn an extra $12,000 on deployment?!

So, you’re a single service member who owns their own home or condo? Or maybe you have a family but you have a second property? This post won’t be for everyone, but if you decide it’s for you, it could save/earn you a decent sum of money over the course of a deployment. Having a rental property isn’t as stressful as it sounds.

So you have a mortgage while you’re gone? That’s effectively lowering you net income on deployment. Depending on what type of property you have, it could be a substantial amount. This article is going to discuss renting your property out for a deployment and basically putting that money back into your pocket. Let’s say you have a $100,000 property which is costing you $650 a month. If you’re deployment is 1 year, that’s $7,800! Depending on the rental market in your area, you might be able to rent it for the same price as your mortgage or even higher! Depending where you live, a 3 bed/2 bath property could easily rent for $1000 a month, putting that money right back into your pocket. It can’t be that simple, right? Yes and no.

There are some considerations. The biggest being how to pull it off. What do you do with your furniture? How do you find renters? Who will collect the checks? Fix problems? Etc. It can be pretty intimidating. The furniture thing could be a big hassle. If you love your furniture and don’t want anyone else using it, you might want to put in in storage. Or if you don’t care that much you could advertise as a furnished unit, but there could be damage so be careful. Then there is the process of finding renters and all the logistics. Luckily there are people out there who want to do all that work for you. Property management companies specialize in screening renters, enforcing a lease, collecting rents, and repairing problems. Generally you can expect an upfront payment that will go into an escrow account(approx half a months rent), and then they collect 10% a month of the rent for their services. There are other fees involved, but that’s a good rule of thumb.

There are also tax considerations. The money you earn is considered taxable income so keep that in mind. You won’t be taxed on it up front, but you will have to pay Uncle Sam on tax day. But what’s better to you, $12,000 that you pay income taxes on? Or having a home that you’re paying for without using? The decision as always is yours to make, but I just wanted to point out a possibility you may not have considered before because you didn’t realize how easy it is. Hope it helped.

This article was written by Val Dufour and is able to be distributed by any means requested as long as this signature block is in place. www.vetinvest.com 

Leave a Reply