It is directly proportionate to risk.As a example low risk investors will park their cash in equity by paying down a income property mortgage.

I have around $180K in equity.

In that situation, you don't want to be in equity.

My whole career has been in equities, but as of right now I don't own any.

My primary residence has about 600k in equity so if I sell, which I'm considering, then I'm primed to take a big hit in cap gains taxes and fees and who knows what else that will eat up any buying power that I have.3.

Not sure if everyone had seen @Brandon Hall article, but I'll link it here:Key Changes in the Trump Tax Plan That Will Affect Real Estate InvestorsMy normal strategy that I had been employing for 2 decades seems to be unaffected by the Tax Reforms.Basically, because I buy in strictly high Appreciating Markets, Brooklyn, NY to be specific, I normally have low cash flow versus high appreciation.This cuts down on Taxable Income in exchange for increases in Equity through Mortgage Reduction and appreciation, which is not taxed until you sell.

I had $400K in equity sitting there and refinancing would make it negative cash flow.I used the great people at IPX 1031 to facilitate the exchange.

And if you choose to invest in equity, they almost always pass on tax depreciation benefits.To answer your final question: they are all completely passive investments.

On the other hand,  investing in equity, like you were talking about with single-family rentals, should give you a much higher projected return.

Your plan as I see it would be to continue to work so that you have income, and let your properties appreciate, both in equity as well as rental income through yearly rent increases and hopefully rental income should eventually come your way.