You’ve started your FIRE journey. You’re diligently building your next egg with aggressive saving and investing in tax-advantaged retirement accounts as well as taxable brokerage accounts.
So what are some options for investing in cashflowing real estate? Below I list five options. This list isn’t exhaustive. It’s meant to give you a list of the more common options.
In syndications, the general partner has a particular piece of real estate they’d like to purchase, so they solicit funds from people who have money to invest. Funds raise money and then invest in a number of different properties.
The benefit of this investment option is that you keep all of the cashflow and the tax benefits. You also retain control. You decide whether to hold onto an investment or sell.
Investing in commercial rentals is similar to residential rentals in many ways. The cashflow can be tax-free. The properties appreciate in value if you increase the income of the property. You have many of the same tax advantages.
The benefit of Supported Living from a financial perspective is that the rents are competitive and your costs are very low. This means your cashflow can be extremely good.