Which Investment Would You Choose?

[Lauren Thompson]

We are new investors at a crossroads with our investment next steps and are looking for advice.

We have around $80,000- $100,000 to invest and are considering two very different paths:

Option 1: Build Out Our Downtown Charleston Duplex
We’d invest about $50K out-of-pocket to add an addition to our current 2/1 and 1/1 duplex, making it into a triplex — which would become a 2/1, a 3/2, and a separate mother-in-law suite. That means two medium term rental units while we live here, and three once we eventually move. The city has already approved the footprints. In addition, the home's value would increase thanks to the prime location and expanded footprint.

Option 2: Buy Another Property (Possibly Out-of-State)
Alternatively, we could invest in a separate property elsewhere which would be a short term rental — potentially with faster cash flow and returns. But it would likely require more third-party management and active oversight.

We’re weighing long-term equity vs. faster rental income, hands-on vs. remote involvement, and maximizing one asset vs. spreading out.

What would you do — expand the home you know or invest somewhere new?