An annuity might not give you the return you would need or is expecting on this type of investing.
There are many on this forum that would give you ideas as to what to do with your windfall.
On this forum there are many with different levels of investment knowledge. You also asked this question in the real estate section.
You should contact a local licensed investment planner to map out a financial plan that is best for you. Your investment should be based on your knowledge of investments you would have knowledge of and not something you heard about that would perhaps be in your best interest, however, you have no knowledge of this form of investment.
Normally there is no charge for the initial consultation. You would want to hire someone, that you come to be comfortable with and trust.
You would want to find this financial planner through family and friends or co-workers and perhaps from church members or others you have in your circle of individuals you know.
In purchasing a house your homeowner's insurance would cover most damages to you house. You would contact you insurance carrier to make any repairs to serious plumbing problems or roof damage caused by a storm or man made damage.
You might also purchase a home warranty insurance policy for about $400 that would cover the repair of any of your home appliances, such as washer, dryer, refrigerator, dishwasher, small plumbing problems, air condition and heating. You would call the insurance company if one of you appliances become in need of repair, you would call your policyholder to make the repairs. There is normally a small fee of $445.00 to $75.00 you would have to pay for each visit. This would depend on the policy you purchase. This policy would take care of all your potential maintenance problems
In the purchase of a house, you would have the security of knowing that you would never be evicted, based on the mood or whims of a landlord.
Because you have a windfall, this would not automatically qualify you for the purchase of' a house. You would need to contact a local mortgage lender to find out the amount you would be able to borrow to purchase a house and the down payment you would be required to have in order to be approved for a mortgage loan.
You would want to put down as less as possible in the purchase of a house, If your monthly mortgage payments to include taxes and insurance would be around $800 per month, this might be within your comfort level as you appear to have no problem with paying this amount in rent each month
You would want to make sure that if you are depending on your spouse income for rent, and something happen, you are able to continue paying the monthly mortgage payment.
In not paying a lot down on the house you would purchase, this would give you a portion of your windfall to have for emergencies and unexpected things that arise. This is important.
When you speak with a financial planner, make sure you explain what your plans are and what you would like to do, so your plans would be incorporated into a financial plan for you.
I hope this has been of some benefit to you, good luck.