What to do with $1M

[An Ho]

Hello all, I’m a super newbie here. I’ve been trying to brainstorm for ways to get into the investing world. Here’s my situation: My parents want to gift us a house with a budget of $1M- $1.2M. They will purchase and make monthly payments from the cash they have sitting in the bank making 9% of interest instead of paying all cash. And we won’t have any monthly mortgage payment , then we can save money faster + sell our primary home to invest. However, I feel like buying a $1M and waiting to save money to invest later is gonna cause us some opportunity costs. I don’t want to rush into things but I also want to take some actions sooner than later. Here’s my plan of actions:

1. Sell my current primary resident in Edmonds (20 minutes north of Seattle) while the Seattle market is super hyped up right now. ($800K ARV, $470 loan at 2.69%). The house doesn't cash flow ($2500 PITI, about $2900 median rent). Then I would use the proceed to purchase a 2-4 unit multifamily property to house hack using FHA 3.5% down, use the left over money for repairs and next investment property. My concerns are that househacking might be challenging since we are a family of four, with two kids under 7 due to smaller space, changing schools, and is it a good idea to do this now with the market being crazy around Seattle? And is there a way to purchase a multifamily using FHA before I sell my house? We don't want to rent.

2. Use $1M to invest instead. I'm thinking of dabbling in wholesaling to get as much experience and knowledge as I can, then do the BRRRR strategy with SFH or MFH, and eventually invest out of state since Seattle market is too expensive and I can't really do much with $1M.

While all of this can take a while to accomplish, what would be the best thing to do with the upcoming “crash” everyone is talking about while I have access to the fund? (Some of YouTube gurus have been saying to wait until the market slows down).

I’ve been studying hard by reading books (1/3-4 days) , watch a bunch of YouTube videos obsessively and listening to BBP podcast and other podcasts to educate myself as much and as fast as I can, but I still don’t feel like I have a clear sense of direction to pull the trigger. Any input would be much much appreciated!