Taking the First Big Step

[Brett Avelin]

Hey Folks,

First post.  Some data about me:  I am 44.  Have about $100,000 to work with and want to use it wisely.  Have full time job which I plan on keeping but aim to be able to cut back to part time within 5 years through solid investing.  Have wife and two kids.  Am looking for buy and hold strategy, no flips right now.

My current strategy is to buy as many units as I can get, aka most likely at triplex up to a 5plex.  I am looking at a triplex that will yield 9% return on my money and take most of what I've got.  It's in great shape and 2/3 rented already.  Question - I have friends who say that I could just invest the money in index funds and track them on a 200 moving average to avoid big drops in the market and I will yield between 8-10% over the next 20 years, so do I need to keep looking for a better return on my investment and not jump in on this one?  I want to maximize the money I have and don't want it simply locked up in the market at 8% if I can be hustling and using it more wisely to get a larger return.  Am I foolish to think that I can find a larger return out there in RE closer to 20% long term?

Thanks