How would you use a $100k 5.5% Private Money Loan?

[Jake Arnett]

Hello!

I am new to the Real Estate investing world and Bigger Pockets but determined to succeed as a professional investor so I can get out of my 9 to 5 career I don't love. I've been doing a lot of research into Small Multifamily properties and creative financing while building out my business model and systems. While networking I was fortunate enough to come across someone who recently inherited some money and wants to partner up with me in the future. At the present they are taking care of their aging mother and do not have the time to be actively involved... but offered me a $100k loan at 5.5% as "start up" funding to build out a portfolio / systems they can later join in on. 

My question to the Bigger Pockets forums is what would you do if you were in my position? I live in Southern California and as you likely know, $100k doesn't go far here. Would it be a smarter decision to buy a property out of state valued under $100k that cashflows a small amount from day one given the favorable interest rate I have locked in? Or should I take this loan and use it as a down payment on a higher value property that I would likely end up needing some rehab and may not cashflow in the early years? I have an excellent credit score but I'm not in a position to float a property's expenses, so cash flow would be the ideal end result of whatever method I take.

I'm open to any and all suggestions for what you would do with a 100k 5.5% loan.