Getting the itch to get back into the game, which direction?

[Tom Makinen]

I had rental properties before, it wasn't very successful and I sold everything.  Fast forward to now, probably the worst time to buy investment property.  I understand that, but for some reason I still have an itch to get 2-3 just to hold.  I am not looking to get rich off of them, but I do need to diversify as I have 95% of my assets in stocks.  The other day when Donald spoke, I saw a nasty 12% drop in my portfolio.  I think it is time to diversify a little more when I see something.  I have the money to get on something if I see it, but then I could also sit if I have to as I have other investments that make pretty good returns.

Anyway I am a conservative to middle of the road investor, I just want to move my stock holding from 95% to 75% as I still prefer stocks over equity.  Here is my question for you guys.  I can think of several strategies, what is your thought on it?

#1  Invest in an older duplex in places like Buffalo, Indiana where they are dirt cheap, but have to deal with the potential crash in economy, repair due to the age of the homes, but these would generate positive cash to start with

#1b  Maybe spend more to move to markets like Vegas, Bakersfield, Fresno where there are still money, but I have to put up more to start.

#2   Get a small commercial medical office or something, I can get one that will generate positive cash flow for 3-5 years, but it's scary to think about what can happen after.  Big risk for less work short term

#3  Go big and get a one bedroom or studio in hot cities like Seattle, Denver, Austin, NYC, Boston.  It will be bloody expensive and dangerous.

#3b Get a small old home in those hot cities, it will be even more expensive but it doesn't have HOA

#4 Find a city where a SFH makes sense, ideally avoid the condos unless I see something that makes sense. The drawback would be vacancy obviously.

Thanks for the time

BTW I do have some real estate holding on the side via REITs and some crowdfunding stuff.  They probably have just as good of a return as any properties I will be able to buy.