Playing the stock market with 100% of your capital on the 1-3 year time horizon is too extreme.

I will say that deal has done wonderfully; it is now worth about 4 to 5 X what I invested about 6 years ago.As I am now 65, I can see the IRS writing on the wall with the RMDs on my horizon; RMDs start at age 70 and a half.   

@Alec Weissgerber It really depends on a lot of things: age, income/career, investment horizon, skill set, lifestyle goals, interest level and qualifications in starting an REI business, what form the inheritance is in currently (unlikely that it’s sitting in cash), etc. etc. etc... she should have a certified financial planner look at the whole picture and offer sound advice.

Not only do I expect that taxes will be higher in the future (our politicians love to spend money we don't have, social security is going broke, and all kinds of other financial ugliness is on the horizon), but I also expect my income to continue to rise through most of my life. 

I am a long term buy and hold kind of investor, my time horizons are such that my bad purchase price turned out ok, and its still turning out well for me every month. 

TAX FREE bc it was a primaryRent:1560 less 10% mgt fee bc you will be out of state: $1404Sounds like you have some capex on the horizon.

Sometimes new roofs are on the horizon, bathroom remodels, etc.  

I am looking to diversify cash into real estate for the purpose of building long term equity (horizon 15 years) and generating dividends (rental income) that I can compound by reinvesting.Compared to most that are successful in this forum, I am a newbie, but my partners are either commercial builders or have personally bought sold at least 5 homes in the last 5 years.

There are tons of people making money from buy and holds and flips in places like Baltimore and SE Washington DC, where gentrification is way off the horizon.

They will be a waste of time.You'll open your lending horizons if you can find properties worth more than $120K.Best of luckStephanie