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Considering adjusting investment into multifamily real estate – thoughts?

We’re in our mid-to-late 40s, with one independent adult child (already working) and another still in high school.

Financial snapshot:

  • Net worth: ~$8.1M (plus $1.5M primary residence, owned outright)
  • Household income: ~$550K (down from ~$800K after one of us took a lower-stress job and we relocated)
  • Breakdown:
    • MSFT, GOOG, AMZN: ~$4.8M (held for ~15 years, ~$500K in unrealized capital gains tax liability)
    • Private equity: ~$1.5M
    • 401k + Roth: ~$1.2M
    • Real estate investments: ~$200K
    • Miscellaneous stocks: ~$200K
    • HSA: ~$125K
    • 529: ~$50K (enough to cover 4 years in-state tuition)
  • Primary residence: Bought recently for $1.5M, paid in cash.
  • Annual expenses: ~$150K (including travel).

The situation:
Most of our net worth comes from long-held tech stock (employee awards). I’ve reached a senior staff-equivalent level, but I’m burned out by corporate politics and don’t see myself lasting more than another 5 years. Watching our portfolio swing $100K+ monthly also makes me question continuing the grind.

I don’t really have a strong retirement hobby or passion lined up yet, though I’ve always been curious about small business ownership. While it is great to see the portfolio grow, we would need some recurring income as well (post retirement), so need to adjust the investment to also generate income sufficient enough to cover living expenses.

Lately, I’ve been thinking about liquidating some of the investments and putting into real estate as both an income source and a way to stay engaged.

The idea:

  • Liquidate about $1M of current investment.
  • Use it to buy a multifamily property targeting 8–10% cash on cash returns (~$80K–$100K income) - assuming it is possible to find such deals.
  • Over time, build a small portfolio (2–3 properties) that could generate ~$200K in relatively steady income.
  • Goal: Reduce reliance on the stock market, partially cover living expenses, and create a transition path into early retirement without feeling like I’m “doing nothing.”

Question:
For those of you with experience in FIRE or real estate investing — what do you think of this strategy? Does it make sense given our situation, or are there risks/blind spots I should be considering?

What are some other ideas to leverage my current portfolio to start generating recurring income within 8%-10% (other than CDs, bonds)?

submitted by /u/jitkmisc
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source https://www.reddit.com/r/RealEstate/comments/1nyh5i0/considering_adjusting_investment_into_multifamily/
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