This type of sale allows them to get a lumpsum - perhaps to do all the trips on their bucket list - and then supplement their pensions which they may have started to receive 20 years or more ago and are no longer adequate for today's costs.Basically the purchase consists of two parts: a "bouquet" or an upfront lumpsum that may be anywhere from 15% to maybe 50% of the property value and a monthly or annual payment (called a rent) that continues until the owner dies.

My guess is you have not actually sat down and done the real math required or anticipated the headaches of being a landlord/investor.Assuming you are a hobby investor, you have surplus income to supplement your investment income monthly and you do not mind contributing cash monthly resulting in lowering your actual end profit who cares.It is a combination of investing and forced savings.

That unit brought us $600 and helped us with mortgage as well.After my wife passed way, back in early 2007, I went through some soul searching and decided to get involved in real estate even more, mainly as a supplemental retirement plan.

Many investors are looking for passive income, others would like to supplement a salary from a job or business they’re quite satisfied with; still others want an inflation hedge.So I ask, what goal(s) are you wanting to accomplish by utilizing real estate investing?

That is going to supplement the 529.  

I've never really had an emergency that would have devastated me financially or put me in a very bad position.I think that I will take your advice and that of @Jeff Rabinowitz and make sure that I have a nice cash fund to supplement my credit lines!

I would love to transition into real estate full-time, while also supplementing my income by doing freelance writing gigs online.

Hobby landlords do not concern themselves with profit and usually supplement their tenants rent.

The houses came up in the same conversation as the retired lady was musing where to get a part time job to supplement her retirement.

I need the rental income to help supplement my income.