MultiFamily Investment as Part of Your Retirement Portfolio

retirement-sign

A recent article in the Buffalo News business section painted a grime picture for those folks heading into their retirement years. The number of folks heading into retirement who are off track for retirement income adequacy has risen steadily over the years to a staggering 53% in 2010. Assuming this trend continues, most of us can plan to work well into our 70s. Most people have been counting on Social Security and their own retirement funds assuming this would be enough, but it isn’t. So what should someone in their 40’s be doing right now to plan ahead? Do what Don Roberts did. At age 46, Don bought his first investment property, a two story brick building on the corner of Hertel and Crestwood. The building has 5 storefront rental units and 10 one-bedroom apartments on the second floor. At the time this property was available Don was able to purchase it with highly leveraged financing with the understanding that there would be little to no cash flow, but figured he could pay off the loan by the time he was planning to retire. It was the ideal retirement replacement income. Don kept the property in good condition doing most of the repairs him self and was always fully occupied. Since Don was self-employed he just looked at this property as another business. Don is an example of a disciplined investor who can separate his salary or self employed income from his investment property.
At Greco Real Estate we encourage our clients to look for multiple streams of retirement income, multifamily investment being the strongest and most lucrative one. Don Roberts was ahead of his time when he planned this for his family. In today’s world it is becoming more than just a good idea, but an essential part of effective retirement planning.

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