Saving for the Next Property - Where to Put the Money?

[Tripp Smith]

Hey Everyone!

I’m currently stashing as much of my income as possible in order to come up with a down payment for my second investment property which, like my first one, will likely be a house hack. 

So my question is this: Where should I put those savings in the meantime? Particularly which investment buckets, not which financial institutions. I’m a big believer in the long term success of total stock market index funds but understand that poses risk in the short term; though I also have a hard time stockpiling cash in a traditional savings account knowing that money isn’t working for me.

I technically have the funds for an FHA loan or small conventional already but I won't be eligible for another owner occupant loan until 2021 and would like to put more down anyways so I've set my timeline for six months - one year.

Any and all feedback would be greatly appreciated. Thanks in advance!