Quote from @Gene Jung:
Thanks for your reply. To add more information,
1. I live in California, so it will probably have to be out-of-state rental property.
2. I will hire a property manager.
3. I would go with A or B class areas.
4. Non-negative cashflow is enough. Appreciation is good enough if it can be better than inflation. I do think we are getting into a 10 year period where growth is slow, inflation is sticky, and asset appreciation won't be as much as what we saw in the past 5-10 years. But still...dollar is trash. Fed really should increase the funding rate for real.
5. Exit strategy: I will just hold onto it 10+ years. Maybe 1031 exchange later. No need to sell.
Gene, Considering your goals I would suggest smaller multi family that you own your self. I understand that you don't need the cash flow but don't get into something that you have to pay for long term. Try looking at new Build 2 Rent units. With this, you can own a property during the best years to own. The first years of a properties life offer little to now capital improvements.
If you buy in the right market then you can just "get in the way of appreciation". Markets that the growth is obvious, people are moving there.
Smaller multi family also offers more ways to exit, and if you own it you have the control to exit on your terms. Or the option to refi in a few years and get another in the same situation, with tax free money.
