@Emily Gowen so as you pointed out you would not have to do a 1031 exchange on your current home to avoid the capital gains tax and coupled with what Dave Foster pointed out I think, speaking from experience you would have a high likelihood of success. 

I have liquid assets and want to make smart, scalable investments that balance cash flow, appreciation, and low risk.GoalsGenerate consistent cash flow to diversify my income.Maximize appreciation potential for long-term wealth growth.Invest in areas with low crime rates to minimize risk.Reduce my tax burden for 2024 with real estate purchases.My Current ThoughtsI’m torn between two main strategies:Multifamily Properties:Looking at markets like Austin, Raleigh, and Tampa for 10-50 unit multifamily properties.Love the scalability and centralized management, but I'm concerned about high upfront costs and competition.Section 8 Housing:Considering affordable markets like Memphis, Cleveland, or Indianapolis to purchase 5-10 single-family homes.I like the government-backed rent stability, but managing multiple properties across different locations seems intensive.Key QuestionsWhich strategy would you recommend for my goals and liquidity?

If I were in your shoes based on what you told us, I'd probably avoid hard money loans right now.

I assume you would have to pay cash, because you have to spend all cash received to avoid taxes.

Form 3115 Correction – Filing this avoids IRS scrutiny while ensuring compliance.2.

A CPA ensures compliance with IRS rules, maximizes deductions, and avoids costly mistakes, especially for higher-income earners with multiple income streams.

Proper record-keeping of rental and personal use days is essential to avoid IRS scrutiny.

Residential loans where borrowers do not need money but want the money (ie. they could have paid cash but want to have some leverage).AVOID:1.

That way, they get steady income, and you avoid a big down payment.

Or better yet, ones to avoid?