If you are buying via real estate contract from a distressed seller and you default on any of the payments within the first 2-3 years, they can and will nail you.

Ill tell you what someone told me because I was in the exact same dilemma that you are in, you want to preserve your cash as much as you can so that means you wanna go with the FHA loan, low down payment route and house hack a multi fam or single fam. if you are a first time home buyer you can also utilize your local first time home buyer programs and they will give you a solid amount for help with the down payment. by coming as little out of pocket with a house hack you can rinse and repeat next year because you still have cash in the bank from the low down payment. if you want to see a professional response to this question go look at my forum and the replies I received. 

But I have never charged a tenant for painting - even if they were only there 1 year and the walls were damaged in several spots.What I will charge them is if they leave a bunch of screws and nails in the walls.

If preservation of capital to the highest level is your objective than money market accounts and CDS etc as previously noted all appear to be adequate possible solutions without knowing anything else about your situation.  

Nailing down your investment philosophy is probably the first step, all money is green, so it really doesn't matter which you use until you figure out what you are trying to accomplish.

If you have no skin in the game, if you walk the lenders are out their money.How you respond or have those concepts nailed down will answer your question.  

Central and parts of Southern BK can provide awesome opportunities but this will come down to price range and preference on location.If you're open to other strategies, @Nathan Gesner hit the nail on the head... house hacking is the way to go!

Purchase price: $340,000 Cash invested: $80,000 3.3 Acres, two joined 1.15 acre lots (one presently empty, the other fenced in), Rural scenic preserved road, 1800 square-ft house, , a cathedral great room, plus 1.5 garage, and large screened in porch; one lot has Dog kennel, small barn, large workshop shed, beautiful grove of bent pines.

@Phillip Mazur nailed it if you search those site you'll be well of 

Federal Historic Preservation Tax Incentives: Provides a 20% tax credit for the rehabilitation of certified historic structures.2.