I own three buildings, one multi-family and two commercial. Seven tenants total, all relatively long term. The buildings are 100% paid for, no debt. I pull in about $75k in rents and cash flow $52k before taxes. I am diligent about upkeep.
Your question is not clear.
How do you treat it? It's just income. Treat it as you would any other income, in whatever context you are considering.
Diversify
Plugging into FIREcalc? A COLA pension? Where would you plug the figure in?
OP might be thinking in terms of retirement planning. I have two words for you: Nothing is forever. Always have a backup/fall back income.
Read the info on the Other Income and Spending tab. What your rental income will do is lower your portfolio withdrawal requirements. Select a pension income and put the income from the rentals there.
It seems that I generally see 'portfolio withdrawal' as reducing the size of your portfolio. Is there a real requirement to draw down a portfolio?
It seems that I generally see 'portfolio withdrawal' as reducing the size of your portfolio. Is there a real requirement to draw down a portfolio?
It depends on the portfolio. Tax deferred accounts (traditional 401k, IRA) have required minimum distributions (RMDs) after age 70.5. Penalties for not taking them are quite high.Is there a real requirement to draw down a portfolio?
It depends on the portfolio. Tax deferred portfolios (traditional 401k, IRA) have required minimum distributions (RMDs) after age 70.5. Penalties for not taking them are quite high.