Thanks for the responses thus far. Interesting to hear some different viewpoints from people with different levels of RE experience too.
Dicey, thanks for the input. You bring up a very valid point about uncertainty over the long haul. I live in a pretty relaxed environment for landlords as far as I can tell, and the general outlook of the people here/political climate is probably quite a bit different than where you are, but that could always change. I'm familiar with JLCollins and enjoy his writing. Thus far, pretty much everything we hold in investments is low cost index funds, and that wouldn't really be changing. Don't plan on diverting any of those funds to play RE games, so I feel ok there. The real estate wouldn't be a primary investment path, but the appeal of an alternate revenue stream with potentially greater returns is a strong siren song to deny. I just want to make sure that if I do take a position in RE, that I fully understand what I'm getting into.
Like you and your SO, we're also crazy people that enjoy taking something rough and turning it into something more. I'm reasonably capable when it comes to most home projects, and have local family connections in every homebuilding trade that could advise or help when called upon. I'm not afraid of a distressed property that needs some work, but once the original work is done, I'd plan on handing it off to a PM company for the day to day operations, and to avoid the midnight phone calls. My hope is that an approach like that could utilize my skills to save a little money up front and make the deal more financially palatable/lucrative, and then reduce time commitment/hassle over the long haul. I've been looking for strong Cash on Cash return more than property appreciation to hedge my bets as much as I can against unforeseen future hurdles. But you're right that index funds are pretty darn easy, and the time commitment for a busy young family where both parents work full time is far lower than what an RE project would demand. So thank you for the advice. I'm still weighing options, watching, and learning.