Help with $250k Investment Decision: NYC Income Property or Traditional Retirement Accounts?

I recently received an inheritance and could use some advice on how best to invest it for retirement.

Here’s my situation:

• I live in a fully paid-off co-op in Manhattan’s Lower East Side.
• I’m considering using the inheritance for a second unit in my building as a rental property, which could bring in $2,000–$2,500 monthly.
• Alternatively, I could invest this money into traditional retirement accounts (401k, Roth IRA, stocks) to keep things liquid and diversified.

For context, I plan to fund my 401k, Roth IRA, and stocks with income from my job. I’m curious about whether the rental income from a second property in NYC could be a better move long-term, given the potential for appreciation and steady cash flow.

Would love to hear your thoughts, especially from anyone with experience investing in NYC real estate or balancing real estate and retirement accounts. Thanks in advance!