$3M in buying power with 20% down - what to do?

[Jack K.]

Based on income, I qualify for a $500k mortgage and my friend qualifies for $2M mortgage. Together we want to go in on a real estate project(s). We can throw down around $500k-700k. We are both based in Brooklyn. My plan was to buy this extremely nice 2-unit building in Williamsburg, Brooklyn and rent it out doing short-term rentals while living there. If I didn't do short-term rental the place wouldn't cash flow. However this area continues to grow in value. I would be managing the deal and hopefully turn this one into more and more future deals. Thoughts/recommendations? I feel like this would be easier if I wasn't based in New York.