If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

Really established our finances and money goals.

A GC makes money based on what you spend. 

And, for those people who have more time than money, they can put in sweat equity into directly owned real estate.

I also have $102k in a money market account that currently earns about 4.5%.

As you indicated yourself, it's mostly throwing away money because you have nothing left at the end of the lease.

It may some disgruntled students who joined, but realized real estate was not for them, and sued to get their money back. 

Dave Ramsey has a good saying about how Thanksgiving Dinner is different when you owe money to the other person at the table.

I am kind of new to real estate investing as I got lucky the first two times but now I am looking to invest quite a bit more money and I am slightly terrified. 

What if you need to inject more money?