401k/IRA or Multifamily Homes/Investment properties.

[crzy2bealive]

The debt thread got me thinking...

401k/IRA

Or

Multifamily Homes/investment properties.

What would you rather put your money into?

Would you cash out your 401k/IRA to buy property?

Who only does property and doesn't have anything in a retirement account??



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[Wbinder]

Just watched this last night got me thinking

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[crzy2bealive]

Just watched this last night got me thinking

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I have been watching a lot of that lately. I have some friends thay don't have a dime in retirement savings but have 4, 4 unit homes.

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[crzy2bealive]

And for arguments sake let's say your employer was not matching.

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[Mandelon]

I have both. I like rental properties because you can control them. With investing in wall street you are at the mercy of the market. Enrons happen. When the market does well, you feel like a genius. But you can't control the market.

With fixer uppers you can have a real effect on how things turn out. But you really need to buy well. I picked up properties on the cheap over the past two foreclosure booms. Buying at the bottom really boosts the upside and keeps your debt service low. The tenants make the payments, and you get a little bonus every month. Once they are paid off, then you're golden. You only need a few places to replace your income. Granted, trying it in Southern California is hard due to the crazy prices.

 

[brgrcru]

The debt thread got me thinking...

401k/IRA

Or

Multifamily Homes/investment properties.

What would you rather put your money into?

Would you cash out your 401k/IRA to buy property?

Who only does property and doesn't have anything in a retirement account??



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almost all of my investments are in property, just put little in a retirment account.
im 55 this year . I really do not plan on retiring , I enjoy my business , and life. probably have someone, run it for me, eventuually? but then again maybe not.

 

[DrunkenSailor]

Property

 

[LargeOrangeFont]

I’m doing both. The 401k matching is free money. The 19k per year 401k contribution helps my tax posture. At least do enough to take your employer match.

Rental Property is more work, but if you are gonna buy a multi unit and live in one, I’d almost always say do it.

If you are buying property as an investment you really need to be aware of the cap rate and all the sunk costs. It is really easy to buy a rental and make $0 if you are not careful. If you are simply hoping to break even month to month hoping to cash in on the appreciation, that is certainly a strategy, but I think you are looking at the wrong properties in that case.

It is still a “buy low” game with property, but the nice thing is that if the math works out where you want it, the decision to buy becomes an easy one.

Property is like a stock, (ideally a dividend paying one) there are up and down years, but you are still on the hook for the down years, so you just have to be properly prepared.

 

[Spudsbud]

what else gains a $1.33 for every $1.00 you invest and grows TAX FREE over your entire life?
Property is a fine secondary investment.

 

[RodnJen]

The debt thread got me thinking...

401k/IRA

Or

Multifamily Homes/investment properties.

What would you rather put your money into?

Would you cash out your 401k/IRA to buy property?

Who only does property and doesn't have anything in a retirement account??



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The short answer is diversification. Both would be best. The 401k is more liquid but you’ll pay come tax time.

 

[pronstar]

Diversity.
Multiple income streams, and multiple investments, is the key.



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[2FORCEFULL]

what else gains a $1.33 for every $1.00 you invest and grows TAX FREE over your entire life?
Property is a fine secondary investment.

ok, what did I miss....???? what gains 133%

 

[CanyonLakeDave]

IMO retirement is all about passive cash flow not so much built up wealth, per-say . Even in a bad market rental properties will produce an income that as stated before is controlled somewhat by the owner/landlord. I could keep going on about my experience so I’ll try and make this short. Personally I lost a shit ton of cash last go around. Kept some in the market and pulled some to buy rentals properties. Those properties have since increased by triple in value AND produced a several thousand dollar a month income.....again IMO but from experience. Yes we also have a small 401k.....