If you had US$200,000 to invest in real estate. which locations would you choose to invest for best short term and best long term investments?

Personally I'd choose something local where I know about the market and every once in a while a great deal comes through. Of course if I got a great tip about another area, I would definitely reconsider. I definitely think it's better working with a market you know of. For example I know that in Texas (since you advertise San Antonio in your sig) you can get practically a mansion for the price of a small ranch where I live, I wouldn't know which investment would be better in the future since the homes and values are very different in both areas. The reason I know about this is because I had buyers under contract on a house where the owner's were going to Texas into a much bigger newer home for less than the house they lived in. They lived in a ranch and the house they were buying was basically a mini-mansion.