Hello, I would like to diversify my investments a bit and am looking into real estate. I live in the Bay area and purchased a home in 2010. We have been fortunate to get a bit of equity on our property and if we rented it out may get $600 or $700 in cash flow. I was thinking about renting it out and purchasing another property to live in.
Im 39 and my wife is 40. We have 2 young kids and have a decent income. I'm currently maxing out a 401k and adding 6k to my wife's Roth IRA. I'm considering lowering my contributions and saving that money toward another property. I'm not trying to hit any home runs, I just want to retire comfortably and it would be nice to own a few properties. I don't know how much more personal info it is safe to put on here. Any advice is appreciated. Thank you.
Well I have a few questions I guess to start with. I probably have a lot more:
1. Is it wise to stop contributing to my retirement (mostly) to save for a down payment to purchase another property
2. Should I take money out of this property to purchase another?
3. Should I rent this property out or sell it and try to buy two properties.
4. Is it wise to get into something during what seems to be the top of the cycle.
I have many questions, but I guess those are a few to get started. I guess I'm looking for strategies and to see what experienced investors would do in my situation. We currently have around 400k in equity.
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