How do I leavarge 950k index funds brokerage account for rentals/RE buys?

[Mario Gonzalez]

I'm 32 years old, earning an $85K salary, and currently living at home. My net worth is $955K, with all but $3.5K invested in VTSAX across both retirement and non-retirement accounts. I'm close to reaching my $1M goal and maxing out my 401(k). Right now, I'm focused on increasing my emergency fund and cash reserves.

I'm exploring ways to leverage my index fund investments at Vanguard to acquire rental properties. My target is an 8–10% cash-on-cash return, and I'm considering marginal loans and DCR loans. Are there viable strategies for purchasing rental properties without having to liquidate my holdings

I hit 1mm one month ago at the highest of the market. 

I don't mind staying the course I'm currently in. It's working however I do want some exposure to real estate. And that could mean a primary residence of a duplex house, hacking or even a rental property in the nearby state of Pennsylvania. I live in an expensive state, New Jersey, which I'm not sure if it's worth acquiring any properties in this state. would like to plan now to acquire in the future. 

[Travis Timmons]

I'll echo what @Nicholas L. said - VTSAX will likely outperform a first time real estate investor buying out of state. I've done it and had success, but it's hard and most people do not do as well as strangers on the internet make it seem. 

You don't get cash flow from leveraged long term rentals in the current market. It just doesn't exist...even the cheap, on paper cash flow properties like will not make any money on end of year, after all expenses, actual returns.

The only real path to cash flow to live off of right now is either a paid off property or a well executed higher effort strategy like short term, mid term, or rent by the room. Even those don't provide much in the current market. Pretty much every STR market has normalized to an 8-15% return...it's a lot of hassle, expense, and risk for the incremental increase vs. VTSAX long term average. And MTR/rent by the room isn't really enough cash flow to make a serious income if that's what you are looking for.

I think that it's a "What can you do that is really hard?" market right now. Answer that question, and you have a strategy that could work. I still think house hacking is your best bet. Leverage + appreciation + time in a high appreciation market is and probably always has been the best investment in real estate. You just have to figure out how to stop the month to month bleeding in year 1-2-3.

Lastly, be careful with leverage against your investments. I think it's a Charlie Mungor quote that I remind myself of regularly - "Leverage is how smart people go broke." You have $1M. Be opportunistic and paranoid at the same time.