@Natalie Schanne-I was in same position as you. We ended up buying more off market small multifamily properties in the Midwest (Towns I am familiar with) cities. It came down to studying few "how to invest out of state" books before taking some actions. We built a team of lenders, property managers & inspectors-once that was done we closed and saw great ROI on these properties. In your case you mentioned you don't have a lot of spare time-you may be able to partner up with someone who is actively involved where he brings the deal and you bring the money (Brandon Turner built his portfolio using this strategy).
Also it sounds like you understand how the stock market works (which I am not very good at)-may be connect with folks who are sort of expert in that space and go on about it. In general whether it is RE or stocks-both asset class is inflated-unless you buy off market properties you will see slim returns.
Let me know if I can help you in any way possible. Best of luck.
