Views on investing in real estate vs other options

I'd diversify. Maybe one rental house, the rest in stocks/bonds/cash. Maybe buy a smaller parcel of land for 100k and start a trailerpark, that way you won't have to worry about maintaining the houses, if you're dead set on a real estate investment.

Just don't go 'all in' regardless of what you do. Leave yourself some wiggle room in case you misjudged the rental market demand, cost of building, etc.

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Could anyone recommend any better ways to invest the money?

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Not if you're comfortable with your realestate value assessment and management capabilities.

Better ways to invest?
II may sound simplistic, but successful investment in anything is a matter of flexibility, preparation/knowledge, and expertise, either personal, advisory, or both. For every buyer thinking he's getting a good deal there's a seller who feels good about unloading the asset. Usually the one less expert and less prepared loses. Certainly would be the case with real estate.

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That will work only as long as you don't get audited by the IRS. Poodlebrain can elaborate on that.....

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figured it couldn't be that simple..... paging Poodlebrain

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Lets say I have some wooded acreage worth $1M

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That would be a fairly large piece of property that could be logged then replanted in stages so that you have yearly or every other year income from the timber.

ETA: Could also keep it leased to hunters at $5/acre or more depending on how the deer hunting is there.

There are problems associated with your proposal. If your company charges you less than market rate rent, then you will have implicit income for the difference that you would be at risk for. Also, the company could not deduct the loss from your rental unit under the related party rules. Your use of automobiles for personal use would be subject to scrutiny as well.

Those are some of the income tax issues. The more important issues are can you make it work from a cash flow perspective, and what are the legal risks associated with such an arrangement? If you are investing $1 million, do you plan on purchasing the rental units outright, in which case you will not have any mortgage payments, but you are at-risk of losing your entire investment in the event of a tort?

I'd cash out the million. Are you working at a plant right now? What do you want to do with your life as far as work is concerned? Use some of the money to go to college/trade school/start a business.

Unlike publicly traded securities real estate can be laborious to sale, especially rentals. You are young, I would be dead certain I wanted to live long term in the approximate area in which you would build/buy the units. That is one thing currently holding me back from putting more money into RE right now as residential properties can be bought here in the ATL market that are nice 3/2 properties close to employment hubs that would easily cash flow with a > 20% cushion over monthly costs with a very reasonable down payment. My friend bought one last week for $130k that sold for 215k three years ago and it is in a very good area. I have enough on my hands with a primary residence, 2 residential houses, 2 commercial property interests, and a residentially zoned lot. I could be living in another country five years from now for all I know, so no mo property.