‘Would we be better served to continue putting $5,000 or more into stocks each month, buy a rental property in another state where the market is great?’
My wife and I are in our mid-30s and live in Southern California and have a combined income of about $350,000. We currently invest $5,000 a month into index funds and ETFs. We have recently begun to look at homes as our rental costs about $4,500 per month. However, for even $1 million in our area, you will get a fixer-upper that is over 60 years old, which is undesirable to us.
Moving out of SoCal isn’t an option because of work. With an annual income of around $350,000 which is projected to increase again soon, should we try to save the requisite $300,000 or more for a jumbo mortgage in SoCal with a mortgage that will likely cost our current rent — plus the $5,000 we put into the market monthly?
Or would we be better served to continue putting $5,000 or more into stocks each month, buy a rental property in another state where the market is great (say for $250,000 or less) and continue to rent?Sincerely,