Since you don't have experience doing a deal, I'd recommend passively investing first in order to gain a basic understanding of the investment process as well as gain some investing confidence. 

From there, I would either start small by yourself (2 to 4 units) or find a partner with experience in larger multifamily, bring capital, and have some other active role in the partnership.

@Deepti Mandava as you can see from the guidance already shared in this thread, the common advice is to find a partner with experience.  If you have the desire to be an active investor, find an experienced partner that is active in the asset class you like the best, and partner on a deal with them.  That will give you the experience you are seeking without exposing yourself to the higher risk of figuring it out on your own.  If you would rather be a passive investor, investing in a syndication would be a great option. In either case, make sure to take the time to perform proper due diligence so you are comfortable with your prospective partner before you invest. Partnering with honorable experience will help you write a happy ending to this chapter of your investment story. 

All the best,

Jack

Looks like the OP @Deepti Mandava got a lot of  thoughtful and detailed advice here. I’d be nice if she had the decency to respond, or at least acknowledge it. 

@Joel Owens . Thanks for the response Joel. Based on what I am seeing, passive investing / syndication seems to be best option. What are the pitfalls with syndication. Specially when you don’t know these folks personally. How good are the laws here and protections so you don’t get cheated ?

@Ian Ippolito Thanks for the advice Ian. Will pm you.

@Lucas Miller thank you Lucas. Syndication seems to be best bet. Where can I find information on tax advantages you are referring to ?

@Jay Helms : :)) financial independence and consistent cash flow.

@Alina Trigub . Thanks Alina. I want to start passive and get into active investing in a couple years. But the goal is to learn more and make good investments for financial independence. Any tips for your journey ?

@Theo Hicks thanks Theo. I am leaning towards the same model.

@Deepti Mandava I would go multifamily.  If the economy takes a hit people still need a place to live.   Retail/Office properties are tough asset classes to be in in a recession.  You'll see those properties vacant for years while residential units will stay full.   Best of luck.