With $200k to invest, you have a few options depending on your goals and risk tolerance:1.

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.

I think it is a matter of risk tolerance.  

There is no such thing as good or bad.Investing is deploying capital to get a return based on one's risk tolerance.

It's always good to have reserves and the problems that can arise can be quite costly, so it's important to have an emergency fund, but part of what you'll want to think about is your risk tolerance and back up plans.

Guys like Me, Matthew and Dan have a higher risk tolerance and more experience.

The JLC doesnt tolerate newbies very well unless you explain that you are one. 

The goal is to be close enough with a calculator to make an informed decision, based on your risk tolerance and capital reserves (Cash in the bank for variances in the bills or emergencies).Regarding my comment on off-market properties - I'm referring to the buyer who wants to find a "deal" through a wholesaler, but does not think to use a real estate agent/broker, and is either using cash or owner-financing.

The easiest way to do that is to be honest with yourself about your goals, risk tolerance, personal bandwidth and capital. 

Nonetheless, if you have the risk tolerance, several neighborhoods/subdivisions are worth exploring.