Advice needed for a newbie cash buyer

[Aubrey Cook]

I’m totally new to real estate and looking for some advice. I’m currently a graduate student studying studio art at a school in DC. After graduating in 2 years, I plan on moving to SF to pursue a career in art. I have about $850,000 in cash parked in an index fund that I saved up over many years. I’ve essentially been living off this money and using it to fund my education. But the money has been growing too slowly and it won’t be sustainable in the long term. So I’m looking to take the cash out and invest it in real estate because it seems like a much safer bet than the stock market. My eventual goal is to use real estate to give me a nice cushion in passive income where I can spend my time focusing on art without worrying about the bills.

So I’m wondering if anyone has suggestions for investing strategies? Getting a mortgage is out of the question because of my unemployment...I’d have to buy with cash. While I live in DC now, I will move to the SF eventually. Both markets are pretty pricey it seems though so it’d be harder for a cash purchaser like me. I’m not sure if I should focus on DC, the Bay Area, or out of state for my particular goals. Any suggestions for where to invest and what kinds of properties/strategies that’d be good for my situation?