What would you do with a million dollars in cash?

[Nick Horob]

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.