Exploring different investment strategies

2 Replies

I'm looking to build out a real estate portfolio over the next couple of years so I'm exploring different investment strategies. Would love to get insights from folks that have been doing this for awhile. 

Here are some questions that I have:

  1. Cash flow vs. appreciation? What do you bank on more, and why?
  2. Asset type? SFH, multi-family, commercial, condos...? Why? What other asset types have you explored and why did you choose against them?
  3. BRRRR, buy & hold, flip? Why?
  4. Do you look for properties to fix up? If yes, cosmetic work or major renovations (conversion)? Are turn-key properties not worth the premium in price?
  5. Location? Major metro areas, suburbs, rural? Why?
  6. Tenant profile? What do you look for in tenants? How important is tenant profile in your overall strategy?
  7. What's next for you? If everything goes well, do you plan on continuing on doing what you do or get into other areas of real estate (ie move from SFH to multi-family)?

Any feedback is much appreciated.

Thanks @Andrew V. for starting this thread...

·  Cash flow vs. appreciation? What do you bank on more, and why?

Always cash flow. Investing for appreciation only is gambling. I accept appreciation as a bonus but never plan on it when investing. If a property doesn't cash-flow (or I can't add value), my money is better served elsewhere

·  Asset type? SFH, multi-family, commercial, condos...? Why? What other asset types have you explored and why did you choose against them?

MF (6+ units) as it 1) eliminates bidding against emotional homeowners 2) simplifies financing 3) more doors under one roof

·  BRRRR, buy & hold, flip? Why?

BRRRR (which includes buy and hold). Appreciation is forced by improving NOI which generates equity to leverage

·  Do you look for properties to fix up? If yes, cosmetic work or major renovations (conversion)? Are turn-key properties not worth the premium in price?

BRRRR implies rehab, so yes.

·  Location? Major metro areas, suburbs, rural? Why?

Mid-sized cities with diverse economy.  Lower price per door when compared with largest cities.

·  Tenant profile? What do you look for in tenants? How important is tenant profile in your overall strategy?

I don’t deal with tenants… that’s the job of my property managers.

·  What's next for you? If everything goes well, do you plan on continuing on doing what you do or get into other areas of real estate (ie move from SFH to multi-family)

Buying more / larger MF.  Exploring markets in the USA

Always go for Cashflow as that will always help you sustain yet keep it with a balance of appreciation as well because appreciation helps you gain equity which is needed to pull out in the future to do more deals.

I agree with @Chris Baxter