Are cabinets stock or custom? 

We also have a lot of old housing stock, pre 1900, so finding a distressed property to renovate and force appreciation is also very easy.

@Joe Villeneuve hey where are you getting that 12% COC on the 60K the stock market?

Stock index funds are one option but a little worried about that being at it's peak if not near it's peak.

The stock market is way too inflated at this point in my opinion. 

You can invest it in real estate, stocks etc. my cup of tea is investing in mortgage notes where I know a lot of passive investors use their IRA to invest because it is mailbox money when your buying performing notes and typically they have plenty of equity and provide double digit returns

Looking at those factors, I felt more comfortable leaving my cash in the stock market- growing it slowly until i found a deal that would cash flow better.I finally decided to look out of state.

Or even if you invested in a high yield stock like ATT which pays over 5% dividend, you would earn $30,000 per year.

It's a good little investment (we don't really plan on being "big time" investors, but I'd rather do real estate than stocks/etc). 

Taking 20k out might be prudent because the stock market is in the top quintile historically (valuation wise).