what are good income options for $150k-$300k?

[Bay H.]

My parents and my in-laws recently gave us $150k each. We don't really need their money so now we have $300k extra in cash. I'm thinking of investing for cash flow to supplement their monthly income. I plan to take a long term hold approach and use the equity paid over time for kids college funds 10-15 years later. Is this a reasonable thinking?

We live in SF bay area where housing are super expensive and cash flow positive is very difficult to achieve. I'm looking into investing in apartment complex or multi-family units in other states. Which area is currently giving good cash flow? I'm looking at Atlanta but also thinking about Dallas etc, just because I heard more about these areas. Other suggestions?

Will it be better to operate two properties with $150k down payment for each or pool the capital together for $300k down payment? Two smaller properties can somewhat mitigate the risk but on the other hand a larger property may provide better economy of scale. I'd really appreciate if you could share your wisdom.

We have very good credit but I guess commercial loans are more based on property financial than owner's credit (unlike for our primary residence). We will need to hire professional property management since we are currently busy with our own careers and kids. But we are very interested in getting into RE investing and are willing to take the time and learn.

I'm hoping $1500/month income for each $150k. That means 12% cash on cash return. Is this doable in CRE?