You can have the best of both worlds….owning an RV and never eating a penny of depreciation.
First example: (I’ll use round numbers, but the principle is the same) you have $100,000 to purchase a motorhome/fiver/tt. You make the purchase and after five years your investment is now worth about $40,000.00, after ten years it might get you $10,000-$15,000. And now you’ve become too old to enjoy the RV so you sell out and have a small sum to use towards the purchase of a place to live.
Second example: You purchase a decent rental property for $100,000.00. It rents for $1000/mo. After taxes and insurance you still net a nice $800/mo. income. Then you find a nice motorhome/fiver/tt and finance it for 10-12 years and use the $800/mo rent to make your payment. After ten years you sell the RV and get $10-15,000 which pays off the balance you still may owe.
But…..you still own a home that is now worth $120,000.00. You sell the rent house and get a nice condo on the beach, or a great lake home, all paid for by someone else.
(note: you must have the $100,000 in cash to purchase the rent house or the plan won’t work).
I know some of you will crab about renters tearing up the house, that may happen, but good management won’t allow it to happen. It’s a plan that will work.
