If your goal is to buy strictly for investment its not bad to stack cash.

It all comes down to you researching and aligning with the area that you feel will fit your investment goals best. 

The goal is to achieve and maintain financial freedom.

If you decide to exit real estate entirely, just make sure whatever investment path you choose aligns with your goals and risk tolerance.

It is really going to depend on your cash position and long term goals.

With your goal of $40k/mo you're at upper fed bracket, plus any applicable state taxes. 

It’s such a big leap of trust, and unfortunately, there are agents who don’t always live up to what you need in this process.An out-of-state investment can be daunting, and it’s so important to have someone in your corner who truly understands your financial goals and is committed to building a relationship beyond just getting to the closing table.

It's a balance of cashflow and wealth accumulation.One of the goals is to have tenants pay as much of your cost-of-ownership as possible (loans, taxes, insurance, etc.)In high-cost areas, any Class A or B property you buy will usually negative cashflow for the first 3-5 years, until rents rise enough to cover the negative cashflow + rising taxes & insurance.Investing OOS increases your risks because you may not know the market and you can't check on everything/everyone all the time.If you move forward with your buddies, HIGHLY recommend creating a solid Partnership Agreement!

I’m continuing to invest in real estate while also helping others achieve their real estate goals.

Based on the responses you probably can see that ADU additions on single family homes are still the wild west right now, so you need to be clear on the numbers and goals in your specific market.