HELP! Should I walk away and buy an investment property instead?

[Kaoru Yamazaki]

I am so lost and any help would be so appreciated! 

My husband and I do not own any properties yet, but instead rent for ourselves. We have been in the market for some time, but the market has been so crazy that we have held off.

However, As of a few days ago, we finally put in an offer for a 2.5M primary residence, and our offer was accepted. We have many stipulations and contingencies in place, and with a long escrow (3 months+), we can still get out, should we choose.

With that said, we are desperately wondering if the better financial investment would be just for both of us to invest separately in TWO income properties (to rent out) instead of buying this jumbo residential home. 

At $2.5 million, we are so scared that we’re making the wrong financial move, especially with doming possibilities of inflation or hyper inflation and rates. 

On one hand, we know that will never be able to afford a $2.5 million house if rates skyrocket. But on the other hand, it would be great to know that we have two income properties that are paying for themselves.

We are wondering if we should continue to rent for ourselves and buy the two good investment properties where we at least break even, rather than pouring everything we have into this one $2.5 million personal home.

We really need help in making the smart business decision and would appreciate any advice. we are both pragmatic and have remained very unemotional about real estate. We just want to do what is best for our financial future. Growing our assets and making money is #1 priority for us both. 

Which option will pay off more?

Thank you.