I am curious how folks are saving for investments in Real Estate.
My dilemma is whether to max my 401k, which I did last year, or instead focus on using my extra income to save up and buy an income property (duplex, triplex, etc.).
The issue I face is that by maxing my 401k I eat up a majority of my savings, leaving ~$500-$600 a month in additional saving outside of it. At $600 a month, it’ll take years to save up a reasonable down payment when considering costs of such units in my area or surrounding areas ($300k+).
So - what do you all do? Do you get your employer match and then save aggressively for real estate? Some sort of middle ground?
I also really enjoy the tax breaks with maxing, since it drops me into a lower tax bracket… (2018 will be 12% tax vs. 22%, married filed jointly, because of the pre-tax contributions).