Little help Next Step suggestions

[Kirk R.]

Just searched found and joined BP site. Very much enjoying the site.

41 year old guy - Currently - 1 year emergency fund funded. Live very frugal life style. Have a credit score of around 700. zero debt except for my house mortgage.

Have mortgage on 4 br/2.5 bath house - Have 3 roommates that pay me rent. I basically live with no housing expenses. House is worth about $80k. Owe $55k. 5.5% mortgage rate - $550 payment. Taxes are $150/mo.

I was a starving Realtor for a couple years. Have read quite few of the books mentioned on the site real estate/sales/etc. etc.

As a Realtor - I had access to MLS - didn't feel like I saw any "deals" that got me too excited - 20% down with $2,000 closing costs. Met about 2 maybe 3 successful investors. Most of the people I came across wished they had invested in the stock market vs. Real Estate. One of the investors is an 80 year old buddy that is still messing with his properties a state away in Iowa instead of having time to play some tennis. I asked him today if he thought it might have just been smarter to invest in the stock market? He didn't really answer so assuming he was strongly considering the stock market. Tried using him as a mentor but didn't really see that result in too much - but might give him another try.

I learned some from my Real Estate experience and somewhat enjoyed it.

Options considering:
1. Pay off my current residence as quickly as possible - somewhat leaning toward this cause it eliminates quite a bit of my risk - Probably take me 2 to 3 years to do.
2. Invest my money in stock market using "Magic Formula Investing" system by Joel Greenblatt I think. - he touts like 30% return over time.
3. Just save my CASH.
4. Invest in Real Estate (doensn't much narrow it down). Tax Liens maybe. Don't know.
5. Work on other stuff - self publish - patent - Start a business.

Any thoughts input appreciated.