I get it, this is a question that I answer a lot from investors who are new. The answer is, it depends.
It depends on what you are trying to do. What is your strategy. There are lots of ways to be a real estate investor. I like to joke that its kinda like being a doctor. You can be the eye doctor, the stomach doctor, the foot doctor or the proctologist LOL. There are many ways to be in real estate and some of that depends on your personality and the rest on your end goals.
What does personality matter? Well.. if you ever meet me, you will realize pretty quick I could never sit on the phone for days on end negotiating a short sale. I like to make deals and talk to people. Now that doesn't mean short sales aren't a viable means of finding deals, its just not for me.
What are your end goals? Are you looking for a long term stable income? You may want to invest in rental properties. If you don't mind dealing with tenants you can manage them yourself. If you want to be completely hands off, put it with a management company. I do both, depending on where my properties are located.
Are you looking for real estate to be your primary income right now? Maybe you need to be looking at fix and flip rehabs? Deals you can close on and fix up then resell within 3-6 months for a bigger check!
Most investors have some sort of mix in their business. They will fix and flip for quicker profits and then invest some of those funds into long term rental properties. The one great thing about a rental is that if you keep it up and do the maintenance, it is like an ATM. It will generate cash for you - FOREVER! Thats the kind of thing that builds generational wealth that you can hand down to your kids.
In another post, I'll dig into how you evaluate a deal.
Happy investing!
David
We are experienced real estate investors based in Chattanooga , Tennessee and specialize in off-market properties Nationwide.