For you currently, you could make the argument for rental property and liquidation of collateral.

You are going to liquidate all your available cash and then immediately (according to you) quit your job.What will you survive on and what reserves will you have when the project hits snags??

By the way, have you noticed liquid passive investors know and hang out with others of similar liquidity?

In accordance with the approval, on December 9, 2009, we repurchased all shares of the TARP Preferred Stock by using $25.7 billion from excess liquidity and $19.3 billion in proceeds from the sale of 1.3 billion units of Common Equivalent Securities (CES) valued at $15.00 per unit....

To presume, that in the event of a default, no money would come from the liquidation of the real property is incredibly flawed.

If I knew it was going to happen, I'd "retire" early -- I'd liquidate everything, move my family to another country where people are less focused on material things and are more self-sufficient and I'd start on my long list of books that I've been meaning to get to.

Hard Money will stretch your liquid funds further and allow you to buy more homes at a time.

My experience with Section 8 is that even if they are good tenants, they likely won't have extra funds for things like air filters, bug spray, weed killer, little things that can help keep your home in good shape.

I agree that CHURNING the money and keeping it growing fast and liquid is key.You could be waiting a long time on that big payday.

I can't seem to find any posts answering this question (although it probably has been asked before): when lenders require a 6 month reserve does that typically mean cash/savings account/CD or will they accept liquid securities like mutual funds, stocks, etc?