I am preferential to medium/long term rentals so my exit strategy would not be applicable for many years.I make a comfortable living and have a surplus of money saved up but don't want to liquidate my entire savings accounts so I can get just one singular 200K property that may cash flow for a couple hundred bucks over the next few years.Am I missing something or being overly cautious?

We are seeing a significant uptick in defaulted fix and flip and DSCR loans due to maturity defaults, liquidity issues and rising costs.

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.

Over time assets can be remortgaged or liquidated for liquidity.  

Why not offer your services as a "kind and caring" property solution for a family in need of liquidating an estate?

With a 10% down payment, you can still leverage your savings effectively while keeping some liquidity for reserves and future investments.FHA Considerations: If you're considering another FHA loan, keep in mind the FHA rules regarding primary residence occupancy requirements.

With everything said and done, a $1000 investment returned $124  ($42 from interest payments and $82 from liquidating the property).  

While selling your properties could provide the liquidity you need, you definitely want to consider the tax implications, especially if any of the properties were held for less than 12 months, as those will be taxed at a higher short-term capital gains rate.However, if selling isn’t your only option, I would strongly recommend looking into a cash-out refinance.

Worst case i will use a heave down payment using the liquid home equity cash to qualify for that second mortgage.advise 🙏 please

I always worry when people putting large sums of liquid assets into deals.