I was debating whether to post this question here, or bogleheads forum. But since I'm early-retirement oriented myself, I figured this is the place.
Here is my situation:
Age: 26
401k/Roth IRA: So far this year I focused on maxing out both vehicles and I'm 1 and 1/2 paycheck away from full 401k max contribution, and used last year's bonus to max out Roth IRA already. So from May 1, I will be getting $4.1k/month after taxes for the reminder of the year.
HSA: I'm on track to fully max out HSA in '14
Income: $72,000/ or $~4100/month net after taxes/health insurance/HSA contribution.
Total expenses distributed per month (rent/food/utilities/lavish travel): ~$1000
Cash on hand at Ally savings account: $64k
Post-tax investments: $15.6k (Vanguard Target Funds) + $29k (VTI) + $11.4k (Bonds at Hartford)
Pre-tax: 401k: $83k, Roth IRA: $35k
I will be eliminating Post-tax target funds and bonds investments as soon as I find a house (stupid me for investing in those funds but I didn't know much about investing couple years ago). It does not seem to make sense to eliminate them now and take a tax hit.
I'm pre-approved for the mortgage (790/800/798 credit scores) of up to $420k. I plan to purchase at least 2-unit house so that renters will cover my mortgage OR have roommates myself. Either way I'm shooting for my mortgage to be paid off in total rent and live for free. Since I live in high cost city, there is no house under 370k that meets my rentability crieria (they are in 380k and up but under 420 is doable). I know how to fix up houses / typical issues so this will save me some $ over long term.
I'm in no rush finding a great potential house, but I'm confident I want to get one within next 1-3 years.
What would you do with cash if you were in my situation until I actually find the house?
Any other general recommendations / suggestions?
Greatly appreciated for your input.