I'm brand new to the forum and have been slowing reading the content here on BP. I want to get involved in real estate but the question I bring to you today is about my parents' situation. They own two homes, one in a beach town in LA that's being rented and one in the bay area. The bay area home was purchased for around 700k and now could be sold for 1.3-1.5million since real estate here is so hot. They are nearing retirement age and don't really have a need for a home so large. I'm thinking of convincing them that since the house may never be worth as much as it is now they should sell it and buy a multifamily property in the bay and live in one of the units. This way they have their living situation sorted and would actually be making a steady income.
I'm thinking they could easily buy a multifamily property in the 2-3million range. I know I may come across as a complete ignoramus but I just want to know if this is a half-decent idea or not an advisable "retirement" strategy
It sounds to me like a good option to reduce their expenses and get some extra income. I like it
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