Or did a partial exchange and kept cash to give to one or more of the partners. 

Plan on renting by room to maximize cash flow.

Hi @Mary Chen, If we are utilizing a 1031 exchange on the sale of this property the expenses you incur for repairs wouldn't necessarily fully translate to cash in hand at closing without potential tax burdens.

My wife and I invest with cash and/or with our retirement accounts. 

Jason,Springfield has some great properties available for cash flow and options for 2 family duplex/stackers. 

Again, this is like playing the lottery.

It's the best way to test what you like and don't like in a low risk environment.Once you've done this, you'll probably have even more saved up and experience to make you more confident in choosing a direction.If you decide to just dive into one of these markets and strategies, I'd recommend focusing on your personality, goals (cash flow first or something else) and how much time you have.

@Louis Zameryka - Prices are high, but you can most definitely still find cash flowing deals.  

Base case would be to sweep to a money market fund or some kind of cash fund where the payments can earn interest until you accumulate enough to reinvest into a new note.

While the units look to cash flow, for the next 5 years we plan on using that cash flow for any extra expenses over and above what we would forecast for the maintenance, repairs, and capex items for the properties since we already have W2 jobs we plan on keeping for at least the next 5 years.