Pull Trigger & Buy my OOS Property? Continue Investing in Index?

[Daniel F. Harb]

Love to get input from all BP members. I am just about at my goal of saving 100K (4 weeks away!) before I pull the trigger and buy an OOS rental property. That is the plan, to start building up my RE rental portfolio. My question: At this point, should I just continue to dump my funds (I save about 3K~4K monthly) into my Index funds? The YTD on my Index Fund portfolio has been 10.31%, 3 month at 21.50%, and last 6 month returns have been 34.92%. Pretty amazing! :)

Of course, everybody knows the market has made phenomenal gains over the last year due to the current administration. :) I am just in a quandary as to continue to funnel all my savings to my Index Fund portfolio with the amazing gains and hold off on buying my first OOS rental property, or pull the trigger and make that first purchase (?). 

What would you do?

Thank you in advance!

Daniel F. Harb, ARRT, RT(R)

[Soh Tanaka]

I like the idea of diversifying. Putting money into an index fund is one way to do it, instead of putting all your money into a few stocks. I also think that having a few properties in your portfolio will give positive diversification. You already have enough money to start buying houses, so go for it.