Buying an Investment Property for Your Retirement

One of the best approaches to saving for retirement is buying a multi-family that will be your retirement fund. Why is buying a multi-family such a great approach to reaching your retirement goals? My answer is easy - forced savings!

If you buy a 3-family in Somerville at $1.2M today at age 35, in 30 years your property will likely be paid off in full. You’ll likely be worth multiple millions of dollars as well. And your rents will likely have multiplied by 2 or 3 times since they started, if not more.

You now have a house that is generating potentially $20,000, $30,000, or more each month while your expenses are relatively minor now that your mortgage is paid in full (leaving you with only property taxes, property insurance, water bill and maintenance). 

If you bought just 1 multi-family in your 30s, there is a good chance you could live on the rental income when you hit retirement age if you did nothing else from here on out. 

In my humble opinion this all assumes an average outcome. If you search really hard for the right property, with a qualified agent who is obsessed with multi-families (hint, I am!), there is a very good chance you could purchase an above average property and see even greater returns.

Depending on your financial goals, you could purchase a few multi-families over a decade and be in a place that not only would lead to a safe retirement for you and your family, but would also set up your kids and grandkids for peace of mind for many decades long after you’re gone. 

So if you are thinking about investing for your retirement, you would be wise to buy at least one or two multi-family properties in Cambridge, Somerville or Medford. If you are interested in historical data on the benefits of buying multis in these areas over the last few decades, give me a shout and I will email you more information!