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Many of the ads for a reverse mortgage in Albuquerque focus on helping senior citizens raise their monthly income through the payments of the loan. This is sound advice that has worked for numerous individuals. However, there are other ways to take advantage of the reverse mortgage to help seniors improve their overall income. Home Flipping Regardless of the economy there will always be homes that are available before market price. These are the types of homes that have either been abandoned or neglected by the previous owners. Using the proceeds from the reverse mortgage a senior citizen or a couple could earn some extra income via home flipping. For example, let's suppose that a married couple owns a home free and clear and the value of the home is $265,000. The couple chooses to take out a reverse mortgage for $170,000. Of that amount they immediately withdraw $100,000 and leave $70,000 on the equity line. With their new found money the couple locates a home that should be worth $98,000 but due to a foreclosure and repairs they can buy the home for $64,000. They then invest $15,000 repairing the home and eventually sell it for $89,000. In this example the couple would profit $10,000 less the real estate expenses of selling the home. If the couple could do this twice a year they could average an extra $20,000 in income yearly. Rental Property Besides flipping homes senior citizens can use the proceeds from their reverse mortgage in Albuquerque to buy and hold rental property. Thanks to modern leasing agents and repair companies with a large staff it is possible that the senior couple would merely own the property while others handle the day to day concerns. Once again, using the example from above, a couple could feasibly locate a rental property for $90,000 to $105,000 and pay cash for the home. If the home rents for a modest $700 per month and the leasing agent takes a 15% fee, then the couple would have an extra $7,140 per year in income. Vacation Property for Rental Most of the time when people hear the term rental they think of a nice home in the suburbs. However, one of the most profitable types of rental properties are vacation homes. Families love to spend time in the mountains, at the beach or on a pristine lake and are willing to rent a nice home for a few days or even a week. People can take out a reverse mortgage in Albuquerque in use that money to pay for a nice vacation home. They would likely follow a scenario similar to the one above where a management firm handles renting the property out during the year and a maintenance company makes sure that all repairs are handled.
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Reverse Mortgage, Reverse Mortgage Broker, Albuquerque New Mexico,
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