My wife and I will be getting an inheritance soon. There are many ways to invest this money. One thought we had was to take advantage of the down real estate market and buy a house for a rental property. We would look for houses at or (preferably) a little below the amount of money we will receive so we can buy it without a loan.
We would use the rental income to build capital so we have money for maintenance etc and perhaps an additional rental property someday.
We live in Portland, OR where the real estate prices have gone down but seem to have stabilized.
My question is: Is this a good way to invest this money? It seems that if there is not mortgage than we would be less exposed but perhaps we don't fully know what we would be getting into.