Hitting either number is tough for most people.AdvantagesNear-instant liquidityEasy to start with small amountsValues are simple to trackDisadvantagesYou must consistently beat inflation and ride out crashes for your drawdown period, which even the best money managers are unable to do.Allocate time to monitor the markets and reactLimited tax advantages, little or no leverageMonthly withdrawals reduce principal and make diversification more difficult.RentalsWith rentals, my goal is to own enough properties so net rent replaces my paycheck.

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

Some investors cash out when they want liquidity for new deals or need to reduce risk, especially if a tenant-buyer has a history of late payments.

Those can be more expensive but reduces your living costs and will be cash flowing when you move out.

You’re making a smart move: reducing your living expenses while positioning yourself to build wealth once the dust settles.

This includes operating your heating and air-conditioning system as appropriate to reduce humidity, using appropriate ventilation, limiting evaporation of water, promptly removing any visible mold, and immediately reporting to us any leaks or other water intrusion into your apartment or any visible mold that you cannot remove.

Quote from @Denzel Dones: Hey everyone, I'm a 34 year old Air Force Vet, earning 6 figures as a Business Consultant.

I always tell them that I prefer private money as it typically comes with a reduced number of fees and at lower interest ratesit feels as if investors are waking up and realizing that hard money is not attractive 

In this situation, where there is no W-2 job or other earned income, the net income from real estate operations could be treated as subject to self-employment tax (FICA).It is therefore essential to maintain accurate and detailed records documenting your level of participation, income, expenses, and management activities.

I'm sorry to be harsh, Colin, but for the risk you are taking, your objective should be to earn an above-average return with a substantial payback.