BiggerPockets

You are going to get a lot of different opinions on this.

As to the niche, if you have identified that your niche idea has more profit potential than another niche or being general, pursue it.

As to the rentals, for most of my investing career I have targeted being a little above the average in the area. I always wanted to be the landlord of first resort, not last. It is harder to do this and it takes a lot of planning but I run my investments like a business and this is the way I maximize the profits for myself and my partners.

It all depends on the niche. However, I think it's extremely important to do. For example, my niche is targeting tired landlords and purchasing the property sub-2.

Too many new investors try to do it all (short sales, rehabs, etc.) and they never become pros at one method.

I think finding a niche is important. You need to do what you enjoy but also stand out. As Mike says, a niche is only good if it helps you make money.

You may find the following helpful:
http://www.biggerpockets.com/renewsblog/2008/04/21/finding-your-niche-in-real-estate/

:cool:

Niche or no niche, I think your exit strategy is very important either way. If you have plenty of cash and you are going to rent the homes, that's one thing.

If you are operating with borrowed money your plans will be different. FHA will only finance 4 homes for Investors. It would be hard to make very much on 4 investment homes.

If you are going to rehab the houses for resale, have you thought about the market coming 10/01/08 when lending standards are going to tighten even more. It seems that we are headed to the point where only "A" credit people with plenty of down payment money will be the only ones you can flip to.

Just be sure you can assist your buyers by helping them find creative financing. It will still be around.

Good Luck