<prompt> Human: My father passed away leaving me with a fully paid off 960,000 home in California. I also received 200,000 in savings. I would like advice as to how to use this inheritance in order to reap the maximum rewards. I am not interested in starting my own business. I would like to invest and create passive income for myself through preferably the real estate market. Acquiring properties and leasing them for passive income My goal would be to get up to 10,000 a month in passive income within the next 5 years. Is this possible and how would I start? 200,000 is a lot of money but doesnt seem like enough to seriously acquire any major properties. Should I take a loan, use my house as collateral, etc?The 960,000 home is currently being rented out for 3200 a month by roomates and I am living in the master bedroom. I spend about 1600 a month on property taxutilities and have little to no taxes because no incomedepreciation expenses.Thank you so much in advance! Also I am 22 years old if that makes any difference.Assistant: Depending on where you are looking to buy, 200k can go a long way as a down payment. Generally, lenders are looking for 20-25 down for rental property which would give you enough to by an 1million house.My advice take it for what its worth; YMMV would be to invest in multi-family dwellings. Multiple onetwo bedroom rents will get you much more than a single fourfive bedroom rent.You might also want to take out a mortgage on the paid off house to finance the downpayment on one or two or even three additional properties. Your challenge might be to show enough income to get the approval for these loans how does your credit look?, but its theoretically possible, depending on what rent you think you can bring in.If I was in your shoes and remember, Im a random redditor giving free advice on the internet, I would look to turn that inheritance into three or four multifamily rental properties in addition to the existing house. I would take it a little slow until I have experience managing the rentals. If I didnt have a job, I would make my day job managing the rentals so I wouldnt have to pay a cut to a management company.Before I got started on this, I would talk to an attorney and a CPA to make sure I had sufficient insurancecontractsetc., and that I was aware of acceptable tax write-offs so I would minimize my tax burden.Human: This is really the type of answer I am looking for. Everything you just said sounds very appealing to me. I will need to look more into it. Is it okay if I PM you after I do some research?  <response>: It sounds appealing because he described the positives and none of the risks. 