how would YOU invest $100k?

[Adam Eckhoff]

Hi Everyone,

After years of saving, I finally hit the $100k mark (invested in an index fund). Eventually, i would like to be a real estate investor; whether it's renting out a single-family dwelling, duplex, etc.. 

I currently own a SFH with my wife. We purchased for $350k and now, homes in my neighborhood are valued $550k.

My question is how would you invest your first property in this situation. Would it be better for me just to keep my money in the index fund? Or, should i take $40k to $80k out for a down payment on a rental property? If it's in NJ i would self manage. Should i invest out-of-state? Would you guys suggest taking out a HELOC. If i purchase a rental property for $80k down (will have $20k left.. just rounding here), how will i save up enough to purchase the second rental property? i feel like it would take forever just to save up..

I really don't know what to do. Any insight would be extremely helpful. 

Thanks,

Adam. 

Commercial Appraiser NJ