Newbie considering a couple options

[Jeremiah Lee]

Newbie here, please go easy on me!

Let’s say I have $200,000 that I’d like to use to invest in real estate and I’m interested in a buy and hold strategy. I’m 33 years old, have a full time career outside of real estate and am trying to decide between option 1 or option 2?

Option 1:

Build Secondary Unit at my Primary Residence in California

-800 Sq Foot –Stick Built or Modular

-All in cost approx. $170,000-$190,000

-est. rent per month $1,500 as of today

-self managed

Option 2:

Put that same money into multiple SFR properties out of state-ave purchase price around $150,000

-likely through a turnkey property company like Norada or similar

-managed through property mgmt.

-assuming a newbie(key word) who completes necessary due diligence

Of course there are many variables and unknowns, but which option would come out on top in the next 20-30 years? Thank you for reading!