{"id":158245,"date":"2023-09-15T10:37:20","date_gmt":"2023-09-15T16:37:20","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=158245"},"modified":"2024-02-29T17:56:58","modified_gmt":"2024-03-01T00:56:58","slug":"where-to-invest-one-million-dollars-in-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/where-to-invest-one-million-dollars-in-real-estate","title":{"rendered":"How Should You Invest $1 Million in Real Estate Right Now?"},"content":{"rendered":"\n

It\u2019s fun to think about: What would <\/span>you <\/span><\/em>do with $1 million to spend in real estate if a money fairy magically handed over a sack of cash? <\/span><\/p>\n\n\n\n

We posed this question to three experienced investors who invest in different markets and asset classes across the country. Their answers in this challenging market offer some great ideas. <\/span><\/p>\n\n\n\n

Look to Florida Real Estate and Affordable Housing<\/span><\/h2>\n\n\n\n

Kim Meredith-Hampton<\/span><\/a>, of Hampton Real Estate and the Florida Nest, said this: <\/span><\/p>\n\n\n\n

If I had $1 million to invest in a real estate project in Pinellas County, Florida, I could take advantage of the county’s strong and diverse economy to maximize my chances of achieving a high return on the investment. <\/span><\/em><\/p>\n\n\n\n

Because of the need and demand for <\/span><\/em>affordable housing<\/span><\/em><\/a>, I would love to repurpose an old school, church, or office building for adaptive reuse. I have helped homeless families in the past find housing and found it to be extremely difficult to find places to house them. There are also many city and county tax incentives to help offset the cost and expense.<\/span><\/em><\/p>\n\n\n\n

In addition, I also have a bank that I\u2019m associated with that absolutely loves community and social programs, and am sure they would be on board to fund the project with my skin in the game of a million dollars. The property would also need to be close to public transportation, shopping and other public needs. <\/span><\/em><\/p>\n\n\n\n

If you had $1 million to invest, you could also consider buying an ultra-luxury high-end home [or a] furnished home on or near the beach for Airbnb. With numerous neighborhoods in the county along the beach areas that offer excellent access to public transportation, shopping, restaurants, and entertainment, you would likely be able to find an area with a strong appreciation potential that could produce a substantial return on your investment. St. Pete Beach to Clearwater Beach are extremely popular and garner a higher ADR (average daily rental) and occupancy. <\/span><\/em><\/p>\n\n\n\n

Related: <\/span><\/em><\/strong>How to Buy a Vacation Rental Property<\/span><\/em><\/strong><\/a><\/p>\n\n\n\n

Finally, I would also consider investing $1 million in <\/span><\/em>commercial real estate<\/span><\/em><\/a>. Pinellas County is home to a large and diverse business community, meaning that a commercial real estate investment could potentially pay off well. Investment in properties such as office buildings and warehouses could bring a steady income, while increasing the value of the property over time. <\/span><\/em><\/p>\n\n\n\n

My all-time favorite is <\/span><\/em>multifamily<\/span><\/em><\/a>. Although it may seem expensive right now and interest rates are high, our multifamily almost always, like clockwork, doubles in three to five years. <\/span><\/em><\/p>\n\n\n\n

My million dollars would go a long way for myself and my family. Building my income for retirement is priority No. 1.<\/span><\/em><\/p>\n\n\n\n\n\n\n

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