Along those same lines, I recommend shifting your mindset from generating additional income to investment diversification.

Investing in both provides some diversification of assets. 

Hi @Sunny Chen,Indiana is a great market for steady cash flow, but if you’re looking for stronger appreciation and diversification, exploring out-of-state options makes sense.

Basic diversification, risk-mitigation strategy.

Slides are presented one by one including one titled, “Norada Capital’s Diversification.”

Also, the diversification it affords is great. 

This strategy allows you to buy one rental annually while maintaining stock market diversification.

Long-term rentals offer diversification, learning experience, and lower returns but may generate lower returns.

Personally, I’d use it as a down payment to expand my rental portfolio, tapping into financing to acquire multiple properties for better diversification and cash flow.

A balanced approach—leaving some 401(k) funds for diversification while allocating after-tax dollars to real estate—can optimize tax efficiency and meet retirement goals.This post does not create a CPA-Client relationship.