These provide stability and regular income, which can be crucial in retirement.Cash: 5-10%Keep some liquid assets for emergencies and short-term needs.Consider these additional points:Diversification: Spread your investments across different sectors and geographic regions to reduce risk.Tax efficiency: Consider the tax implications of your investment strategy, especially with your high net worth.Regular rebalancing: Adjust your portfolio periodically to maintain your desired asset allocation.Professional advice: Given your high net worth, it's advisable to consult with a financial advisor who can provide personalized recommendations based on your specific situation and goals.Risk management: Consider your risk tolerance and adjust the allocation accordingly.

Run the numbers, but if the 1960s home hasn't been maintained, you may have some expensive repairs coming up. 

You need to buy, rehab, rent, manage, refinance if the numbers make sense, don't if they don't, repeat if you identify the right property and if you have the capacity to properly manage, and maintain external sources of cashflow to really get it going. 

Quote from @John Mason: See if you can find time to fly to meetups in hot markets too I am trying to find my first one something closer where I live so it's easy maintain, but I ll keep in my mind. thank you.

To thrive in real estate investing, you must maintain a firm grip on your finances.

Next, maintain professional boundaries with clear communication and a strong lease agreement to set expectations upfront.Proactive maintenance is essential.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I am also targeting small multi-family properties starting out.I understand your point on the costs associated with purchasing, renovating, and maintaining properties.

Proper underwriting and due diligence (DD) processes are essential to ensure that projects maintain a strong risk profile while still delivering attractive returns.

However, for the strategy to be effective, clients must ensure that they meet all the IRS requirements, such as maintaining the short-term rental for a sufficiently long period and passing one of the material participation tests (e.g., 100+ hours of active participation).2.