Hello, I have a duplex currently. I rent out the bottom unit and live on the top unit. I am now 40 years old. Should I focus my money on my 40K and Roth IRA's to max those out? Or should I not put anything in those and just save for my next property. It's getting tough for me to max out my retirement accounts while trying to save for properties. Is it one or the other? How do others do this or balance this?
I think a lot of it is personal choice. Does your employer off a 401K match, if so, I would definitely do at least that into the qualified plan at a minimum as that is free money.
As for the rest of it, I'd say it would depend heavily on what type of real estate your looking at, are you looking for cash flow now, long term appreciation, are you making too much money where you need the tax benefits. I'm in somewhat of a similar position with regards to what to do with my W2 income, but right now I'd like to create more freedom for myself in the near future so I'm trying to maximize my return via real estate, once I have the level of comfort and freedom I want I will likely shift my focus to long term wealth.
But that's just me, really depends on your goals.