krldrummerboy
Recycles dryer sheets
Was just speaking to a co-worker (we're in the bay area) who recently sold his local rental property. To avoid capitol gains he bought 2 rental properties in another state. He chose FL believing it would generate immediate cash flow (the bay area would not) after the 20% mortgage down payment. While he is working his plan is to put the returns back into the mortgage so that it's paid off by retirement (he's 38). The purchase was done without ever traveling to FL through a turn key type outfit that also manages the property. He did some due diligence and used a friend of a friend before investing and seems happy (although it's only been ~6mo).
I know many of the folks on this board mention rental property as part of their retirement income. Given that all of my assets are in my own home and the stock market, is doing the above a recommended method of diversification?
If yes, where do you start the research and what are the pit falls? I obviously am nervous about the thought of trusting someone like this (even if they turn out to be reputable):
BTW- I am 10-12 years from retirement. I would not buy rental property in the bay area (too expensive).
I know many of the folks on this board mention rental property as part of their retirement income. Given that all of my assets are in my own home and the stock market, is doing the above a recommended method of diversification?
If yes, where do you start the research and what are the pit falls? I obviously am nervous about the thought of trusting someone like this (even if they turn out to be reputable):
BTW- I am 10-12 years from retirement. I would not buy rental property in the bay area (too expensive).