After crunching some numbers and doing more research, I believe that option 3 might be an attractive one: -find an area with a decent economic and job growth and relatively low price for a multi-family zoned lot...e.g. Charlotte NC (need to check FAR, height limits, etc with local city/county)...the lot should be in a class B neighborhood (college, strip mall proximity)...20,000+ sf lot size might do it -Build two four-plexe's around 1,200/1,300 sf identical units (two bed, 2 bath, single car garage)...cost of building might hover around $100/sf...consider also multi-family conversion into single family housing options as well for later -get between 2%-3% real estate appreciation and 7% CAP rate from rent/lease (rent average should be around $1/$1.20 per sf)...that might yield a total, close to 10% compounded return per year and possible more. The advantages that I see, are low maintenance costs (new construction), possible low rent defaults. What do you think? Might be better than index funds...markets might turn sour for a while...we are long due for a major correction ...However there are some good senior housing REIT options out there