I'm new here but why not jump in, eh? Disclaimer, I'm an engineer, not a finance person so sometimes I don't know the jargon. This thread might be dead already but it feels like there isn't consensus.
Regarding the suggestions for soul-searching for the OP (what's your risk tolerance, goals, profit target, etc.), try this: (my) #1 rule of business is don't lose money. Also, my guidelines are: if the (annual) return on investment is >20% then it is "a business", if the ROI is <10% then it is "a hobby". Between 20% and 10% is a struggle. Try using those buckets when you research investments and see if it works for you.
Here are three examples of investing $100,000 in real estate trying to illustrate buying (1) without using leverage, (2) with leverage and (3) with (evil) negative leverage. I'd never heard the term "negative leverage" but it makes sense.
Assume property cost is $100k, annual rent income is $18k, annual non-mortgage expenses are $10k. In scenario 1, buy with all cash. In scenarios 2 & 3, buy with $25k cash down payment and borrow $75k. Note, in scenarios 2 & 3, you only had to pay 1/4 of your cash to acquire the property. So, you're going to buy three more just like it (because it is a new complex of buildings, or whatever). In scenario 2, the 30-year mortgage interest rate is 4%. In scenario 3 the interest rate is 12%.
1 2 3 Scenario
$100k $25k $25k per unit cash outlay
$18k $18k $18k per unit annual rent income
-$10k -$10k -$10k per unit annual expense
$0 -$4.3k -$9.3k per unit annual mortgage cost
=======================
$8k $3.7k -$1.25k per unit annual profit
8.0% 14.8% -5.0% per unit annual profit
$8k $14.8k -$5k annual profit per $100k invested
The point of scenario #3 is that, by borrowing money at a bad rate, one is losing money. Replicating that over and over multiplies the losses. Don't do it once and don't do it four times. This is how businesses fail.
The benefit of scenario #1 is that it is simple and you don't have to answer to a bank. However, scenario #2 is (the simple version of) what investors want to do. It makes more money so that you can buy more properties.
