This is often taught as part of spray and pray marketing.

I house hack in Ohio, and I like to put down minimum down payments to have more funds liquid for renovations and future purchases. 

@Kevin SobiloHonestly not a fan of investing my tax deferred amounts in syndications that have leverage and depreciationRather use my liquid cash for those types of investments to take advantage of the tax code and use my deferred accounts for types of investments that do not have preferential tax treatment (like private lending etc)

Also a lot of the hard money lenders these days from 1st time flipper want to see that you have about $50,000 liquid to weather any storms, like supply chain issues from Long Shoremen's strike. 

Under F.S. 83.595, landlords have 4 options when a tenant terminates early, one of which includes charging the tenant an early termination fee (no more than 2 months' rent), but if your lease agreement does not provide for liquidated damages upon a tenant's early termination, you have only 3 options as a landlord.

How much reserve capital do you have liquid, at all?     

Liquidity is dry, debt is super super high on credit/auto.

I'm currently 23 and have access to around 40k liquid to buy a home when my lease is up in March of 2025.

This type of exchange provides investors with a way of increasing liquidity and diversification of their real estate investments, while deferring very costly capital gains and depreciation recapture taxes that may result from the sale of properties.

So this plan might not cover the risk scenario if we were to liquidate in a timeframe shorter than what we've planned for.