Most large apartment complexes require at least 300k of liability coverage.

@Evan Evans I would use that capital down on a large scale Apartment Complex, you could easily buy 40-100 units with that much cash depending on where you buy .

I see a lot of the newer larger condo buildings/complexes have strict HOA's that disallow short-term rentals or airbnb. 

We are buying a 10 unit complex.

2, what is the ROI generally speaking of a condominium apartment.3, are you renting them in a traditional way or using short term rental (Airbnb)?

If you're looking to profit 7-9% a year and then have a chance at a 50% kicker at the time of sale, over about 5 years, get into an apartment complex as a passive investor.

My business partner and I are both newbies, but he can bring substantial funds to the table such that buying a larger apartment complex could be possible (upwards of a $1MM purchase price).

It would be a lot more if the house needed the drywall/electric/plumbing gutted out, or a new roof, like a lot of fixers do, but I wouldn't go that far unless it was desperately needed or selling for flip.For me, a red flag will always be neighborhood, and after that, the only renovation item I've shied away from so far was foundation/structural on an apartment complex I had under contract. 

You will also find that the more units you target, the cost of entry, operating costs, capital costs, and deal complexity also will increase.

PhD economists and hedge fund managers with large teams and complex computational models can't reliably predict recessions.