So are you saying that it makes sense for a business that wants that location, but not as much for a passive investor looking for retirement income?

Sounds like he is doing a ROBS, which is a way to direct your retirement funds to fund a business and generate taxable income outside of your retirement.

Good news is, if you can get one to cashflow, rents are stable here.

Now I have a seller that just wants out and want me to take over payments on 2 rentals he has because he is retireing and wants to move and not handle them long distance.

My wife is still active duty and nearing retirement, and is much more risk averse than I am, so that is one hurdle I am struggling with (any advice would be appreciated).I've read the "Ultimate Beginner's Guide" and found a wealth of knowledge, as well as Getting Started at BP.

My perspective on leverage, since I am in the business of leverage (broker/mortgage originator) is if I can reasonably control the down side and maximize the upside with the terms/rate/cost at which I am borrowing at, such as using a fixed 30 year, limited or no prepays, lower margins, non recourse, caps on adjustment periods, risk/equity share, etc I am okay with leveraging near maximum.For me it comes down to terms and cash flow as long as the risks can be minimized and the cash flow profit spread is high enough and stable enough even with stress tests (market drops rents go down XX%, business income goes down XX% or my personal income goes down XX% can I still debt service?)

I'm considering lots of options--buying a tri plex or four plex, or other means of stable income.

There are a few non-negotiable items like a new roof and refinishing the hardwood floors, but I will be able to cheat on the kitchen and the bathroom.As far as an ideal tenant, I really just want a family that has stable income and won't destroy the house but will also go the extra mile and look after the house and neighborhood.

Borrow from my own 401k retirement account and pay down the principle.

People with a sound and stable job paying a viable wage will revitalize their own areas without outside stimulus.