Both of those methods yielded the lowest quality leads.

If I had an extra 30-40K to invest in 2010-2012, I would have being able to buy 2 additional houses which would have yielded an additional 200-250K in appreciation in today's market.  

You might want to do some fix and flip to boost your short term investing and possibly you can turn that into a rental.  

@Donald Beamon Here is how I see the deal:Purchase Price: $360,000Total Annual Rent: $32,400Gross Yield: 9% (This is the return before expenses)Vacancy Assumption: 5%Vacancy Loss: $1,620 ($32,400 * 5%)Taxes: $5,280Insurance: $480 (Feels a little low)HOA: $0Management: $2,592 ($32,400 * 8%, Even if you manage yourself, you will consider this the cost of your time)Maintenance: $3,240 ($32,400 * 10%, I use 10% as a number, this is probably high, but I would consider $100 a month a minimum. 

Again the higher quality investment with lower returns offers them energy to pursue other more creative avenues that may ultimately yield a higher return.

It's HARD to find any deal that will yield those kinds of returns here! 

Building a 4/4 3200 sf house at $125/sf (plus permits, plans, holding and laying foundation) and selling at $345/sf would yield $134k profit with a hard money loan at 4 points and 12% (assuming holding 8 months for permits and 8 months construction).

They are small and it may boost the curb appeal tremendously.ThanksRick

Stocks are getting expensive, RE have been gone up so fast these past 2-3 years, bond yields so low, will we have enough money to retire ? 

Forget the mortgage for a moment - that's a separate issue from the property itself.What I see is a property that after expenses (your mortgage payment is not an expense for this purpose, that's separate) is going to realistically yield around $450/mo in income, or $5400/yr.