(Beginer) How Can I Invest $1.7M Inheritance in Real Estate

[Lindsay Hemsley]

Hello, my name is Lindsay and I am a graphic designer for a UK-based publication, and this is my first post here.

I have recently acquired a sum of around $1.7M USD and based on my thorough research, I've found Real Estate is the best (possibly safest) option for me. I have outlined a potential plan, and will certainly be discussing it with both legal and financial advisors before making any drastic decisions. As a beginner however, I am creating this post, hoping to benefit from some expert advice so that I am confident and prepared before moving forward.

Roughly, I have decided I would like to purchase five properties in London (averaging $275K per property) in cash, and rent them out. I understand location is everything, and will be looking at properties in areas where appreciation values are constantly rising (3% per year).

The idea is to rent these out at approximately $1400 per month (each), and eventually sell these properties within three to five years when I'll be able to gain between 9% and 15% profits from each property. I am aware that there are risks and countless fees (including taxes, management, etc.) that I have not mentioned here, and that this is all easier said than done, but this is roughly the overall strategy in mind.

As an experienced real estate agent, do you feel this approach is realistic? Would you recommend it? Or, do you feel there are better ways I can go about investing, for better ROIs in the long run?

On a side note, I am 34, currently own my own flat (fully paid) and I am not looking to move.

I have also considered leasing a small serviced-apartments building to the tune of $100,000 for a period of three years. The broker is due to send over legal documents to prove annual revenue and net profits within the next couple of days. Is this approach something you would also recommend as a way to diversify? Or do you suggest I stick to the above strategy only?

As I am only just starting out, I know I have a long way to go, but would truly appreciate any advice/suggestions I can get as to how best you see fit.

A million thanks in advance to everyone. I very much look forward to hearing your thoughts.

Best,
Lindsay