Best use of $200K?

[Joe K.]

Hi All!

Question:

What do you guys see as the best way to deploy $200K in capital currently? SF rentals? Multi-family? Commercial? As a newer investor, is it best to find things in my area, or does looking anywhere in the country make sense?

Background:

I'm a relatively new investor. Been trading stocks for about 10 years, but recently decided to diversify and get into some real estate. Bought a SFH in our small town for $125K in cash about 8 months ago. I'm getting $1250/mo for it (which is REALLY high for my area, congrats me, I guess). However, my tenant asked if I'd sell it. We are currently under contract for $140K (no agent). Between the $15K gain on the property and the 10K in rent I've received, it seemed too good to pass up making $25K on a $125K investment in 8 months. With the cashflow it was throwing off and the way the market is, maybe selling is a bad idea, but...we're in Illinois and the regulatory climate here is....questionable. I'm wondering if I want to be in IL long-term or not and if I want to be in SF rentals long-term...

Thanks in advance! Looking forward to learning from everyone here!