First MF payout coming soon... what to do now?

[Ashley Wolfe]

Hey BP,

My husband and I invested passively in our first ever REI deal. It was a 71-unit apartment complex in the DFW area. We were pleasantly surprised when the asset reached it's goal 3 1/2 years early. The sponsor is looking to sell the property to pay the investors back. Yippee!!

As my husband and I talk about what to do with the capital that will come in, there are different options we've talked about. We both work full time and have a young child. In the next 9-10 years, I want to retire from education and stay home to work the REI business.

*It should be noted that in the next three weeks, we will be closing on our first SFH buy & hold where we will be the landlords/managers but the property is 4 hours away (its a family deal). We aim to have $300-$500 monthly cash flow after finding a tenant.

Here are the strategies we've talked about so far:

- Re-invest 75% of it into another passive MF deal and put 25% of it into a buy & hold rental for monthly cash flow

-Re-invest 90% of it into another passive MF deal and put 10% of it toward educating ourselves in REI (business expense)

-Re-invest 70% of it into another passive MF deal, tithe 10%, spend 10% on ourselves, and save 10% 

Big questions:

Do we form an LLC for our REI business?

Do we form a trust (would this be redundant with the LLC)?

Do we just put the savings into our bank or is there a better way?

Should we be more aggressive in purchasing SFH for better tax advantages compared to passive MF investing?

Is there something glaringly obvious that we're missing or don't know about that would be to our benefit?

Thanks for the input!!!

Ashley