<prompt> Human: Earlier this year my grandfather passed away and left me an inheritance of about 80k and his home. I love my grandpa and I want to use what he left me wisely. Im a single 31 year old and I dont really have a lot of experience managing this much money. I opened an account with UBS and currently have everything invested in mutual funds. They seem to perform well. Ive been considering selling a portion of my stocks to buy a house that I can rent out. I was hoping to spend about 50k on the house, excluding maintenance. Is this a practical investment? Would the income from the rental property be comparable to what the 50k would earn me in medium risk stocks? edit: Thank you everyone for your input! Maybe buying a rental property isnt the way to go. Ive learned some new things here, I really appreciate it!  <response>: Do you want to buy yourself a part-time job as landlord? Thats what buying a rental property is. Alternately, you could pay someone to manage it, and seriously reduce you gain. My suggestion: unless you want to be a landlord or cant offload a property you already have, dont go that route. Answering what to do with the money is meaningless outside of your total portfolio. Do you have a 401k? One or more IRAs including the Roth variety? What are the balances and what are they invested in dont say mutual funds -- say which ones; ticker, expense ratio, asset type? Any other investments? That information would be needed to give meaningful advice on what to do with your inheritance. 