My parents are retiring in a year and are considering selling their house and buying or renting a place close to me and a place close to my siblings who live in another state.

I've spoken to the contacts on the builder side at rent to retirement.

We’re motivated to start investing in real estate to offset some taxes and build cash-flowing assets as part of our early retirement plan. 

Melissa JusticeInvestment Strategist at Rent to Retirement

I have cash reserves and money in retirement accounts, but I don’t want to dip too deeply into my reserves.

I retired from the military last year and have been struggling to find a job that I am actually interested in. 

Penalties are treated as interest, not a fixed fee.When it’s imposed: Not automatically deducted, it's calculated and applied when you file your tax return.Waiver options: You can request a waiver of the penalty on Form 2210 if the late payment was due to a reasonable cause (like disaster, disability, retirement, etc.).California (540-ES)What triggers the penalty: Similar rules, late or insufficient quarterly payments result in an underpayment penalty.How it's calculated: FTB Form 5805 is used.

If I sell the home in Arizona I can pay off my mortgage and have some left for retirement.

But the reserves don't need to be liquid, you can use retirement funds, stocks, etc.

And like I said, I don't care about money; to me what matters more is succeeding in life, being able to retire my parents, and most importantly to me, helping the world out.