Can we see your numbers on the CRE deal? Is the property underperforming where you can add value?
Not a lot of value add here as it is fully leased with recent updates and rents are already at the higher limit. I would say just a pretty steady COC return of about 9-10% annually on the 1m investment.
I glanced at your other thread about the 1031 exchange but don't know your full situation. Is it advantageous tax-wise in your situation to buy this new property and use bonus depreciation to reduce your marginal tax bracket?
Otherwise, I'm not crazy about the prospect of buying a property that's already at the 'upper echelon' of its value. I'd much rather buy something that's underperforming, add value, and benefit from capitalization.
$100k/year on $1mm @ 9 or 10% CoC return is nothing to sneeze at, but I'd prefer searching for a deal where I could generate that kind of cashflow + generate equity on top of it. If you're retiring, don't have the drive to do that sort of thing, or the deal is time sensitive, then more power to you in buying and holding something to generate stable income.
