What would you do with $600K to start Investing

[Mike Koebke]

Hi BiggerPockets friends,

I am searching for ideas and I would appreciate your input.

I am in the process of selling a property with no tax basis that will net me at least 600K. I can take the tax hit or I can do a 1031 exchange. Investing in real estate has always been an interest but for whatever reason, I haven't jumped in.

I am learning so much by being a part of this group. Thanks to all of you!

My question is, what would you do in this situation?

I am interested in single family rentals and I understand the process of a 1031. 

Would you purchase 2-5 homes cash and start from there? Buy more homes with 25% down and having mortgages or a combination of both? 

My risk meter is high since this is new to me. I would appreciate your input and if possible, an explanation of how you would proceed and why?

Thanks,

Mike