What would you do with a million dollars in cash?
A 40-year old family member of mine is set to receive $1 million in after-tax proceeds from the sale of a business.
Assuming they have additional passive income (eg. don't need the money to live on), how would you invest the $1 million?
I would look to find a couple markets that offer attractive risk-adjusted returns and buy a portfolio of SFR's in 2-3 different markets. Buy properties using all cash in an attempt to slightly enhance returns (negotiate lower purchases prices). I'd then look to refi into a conservative amount of leverage and pursue additional attractive deals.
8-12% cap rates would be my target. Is this too low?
How would you put this money to work? I'm just curious to get other opinions.