You will need to Identify your goals, the risks or concerns you worry about, the exit strategy & spend down, and the wealth transfer expectations.

You may want to get a game plan together first e.i identify your market, figure where you can add value to the neighborhoods, pick a property, run your numbers, and then figure out how you're going to finance things.

Even if you are doing a Limited 203k, you'll still benefit from using a 203k Consultant who will identify all the FHA required items, because most contractors don't know what FHA will require. 

Hi @Timothy Casallas, once you identify a market you can explore further by drilling down into the demographics like population growth, jobs and wage growth, employment diversity and supply and demand.

Here are the rules for a "Secondary Property" per Fannie MaeSecond Home PropertiesThe table below provides the requirements for second home properties. 1      ✓Second Home Requirementsmust be occupied by the borrower for some portion of the yearis restricted to one-unit dwellingsmust be suitable for year-round occupancythe borrower must have exclusive control over the propertymust not be rental property or a timeshare arrangement1cannot be subject to any agreements that give a management firm control over the occupancy of the propertyIf the lender identifies rental income from the property, the loan is eligible for delivery as a second home as long as the income is not used for qualifying purposes, and all other requirements for second homes are met (including the occupancy requirement above). 

You will need to engage a CPA for specific tax advice based on your fact pattern.

Recommend browsing the site and reading as much as you can on the entire process of identifying, evaluating, and running income properties.Just because you have the money available doesn't mean you should invest.Smart investors invest for cash flow or appreciation (or both), make money on the purchase (buying below market value, adding value via rehab if possible), and manage conservatively (being realistic with costs, expenses, rehab, etc.).

If passive is attractive to you, identify some MF sponsors that you would work with - some deals require you know the sponsor first. 

@Saad Dar I would go for an LLC with an operating agreement that identifies you both as partners. 

Once you've identified a handful of markets that look interesting, drill down to the micro level and study prices, rents, property taxes and insurance and landlord/tenant laws.