What is my best long term option?

[Aaron Barrett]

To start off I just turned 26 years old and make just over 50k annually. I have approximately 3k in my 401k and am considering cashing it out to invest with additional funds in all cash purchases of sfh/duplexes. My wife is an executive that makes 100k with a full dollar for dollar 8% match to her 401k contribution. We want to retire at 55 so I plan on purchasing the real estate with minimal risk (all cash) to create cash flow to supplement our early retirement using alternative investments. This is to get us to retirement age where we can live off our cash flow combined with her hopefully (ha ha) large 401k. So would you cash out the 401k or keep it going/just leave it be and stop contributing? Also all cash flow until age 55 would be put into buying additional properties

[John Warren]

@Aaron Barrett What kind of price points are there per door in your local market? With solid financials like you and your wife have, in some markets you could both retire in five to ten years! I personally would not buy all cash as leverage is one of the best tools you have as a real estate investor. Have you considered just using conservative amounts of leverage? Maybe 25-35% down on each deal?

For me personally, investing in rentals with leverage has allowed me to go from a 4 unit in 2015 to 33 doors between my local Berwyn market and South Bend Indiana. Without leverage, the best I probably could have done would be to put that money in a certificate of deposit for 2% interest!