Inheritance? What would you do?

[Account Closed]

Good afternoon Bigger Pockets team! I have a family friend that had the fortune of inheriting quite a bit of money as of late. Through a series of events, she is now privy to roughly $500k. She knows that I invest in real estate, and was considering putting some of the funds into different types of holdings. A few of the questions she asked me though are below. I have my thoughts on them, but I'd love to get some others opinions, maybe there is something I haven't thought of.

Should she pay off her student loans first?

Should she pay off her primary residence? Maybe use a HELOC down the line?

She understands to concept of leverage, so she's looking to maximize some homes on that front, but what type of units should she buy? SFHs? Multi? Commercial?

Any tax implications that I'm not thinking of? 

Thanks so much everyone!

[Joe Splitrock]

@Account Closed she should definitely pay off the student loans. No doubt, no question. Student loan is the worst possible kind of debt, because it is permanent debt. So if you go bankrupt, guess what loans are still there there - student loans. 

I would even recommend she pay off all her debt. This is hardly the best time for a newbie to dump $500K into real estate. Look at where we are at in the economic cycle. 

If someone is debt free, they could easily live an abundant life on under $30K annual income.  Then invest all your extra money.

There is a false belief on BiggerPockets that everyone should and will succeed in real estate. The facts say that is just not the case. The majority fail and inheritances are lost regularly due to horrible decisions.