They take good care of the properties, but there's not enough attention given to pricing strategy and they spend money like nobody's business (not a problem when they were spending their own money on the master lease model, but a BIG problem when they were suddenly spending OUR money as the PM).

A common strategy I see with diversification exchanges, is that the investor will purchase the first property cash and the second with a mortgage.

Definitely worth factoring into your strategy, though

With the right strategy, it can become the foundation for building wealth.

Personally, I advocate for a long-term investment strategy and would recommend investing the funds, provided you are comfortable with the expected return on investment over time.

Well worth it and the best strategy to start in my opinion. 

A nice multi family property that you can do some light fixtures on sounds like a perfect strategy for you so you and your wife can have your own unit.

What if franchising is part of the strategy, with a long-term goal of acquiring properties as well?

This strategy aligns well with the buy-and-hold model.Leverage Local Expertise: Partner with professionals like real estate agents familiar with rental markets and property managers who understand tenant needs.

I'm eager to learn more about:Identifying undervalued properties: Are there any specific strategies or resources you recommend for finding deals below market value?