When I’m talking to investors, this questions comes up probably about 90% of the time. The investor asks “what’s the best strategy”?
You won’t like my answer, but “it depends”.

Typically the path someone going into real estate investing is that they’ll hear about it from a friend, family, workshop, blog post, video etc and they’ll go down the path of researching a bit a more…and then it gets confusing because they’ll read about single family homes, student rentals, air bnb, duplex conversions, the “BRRR” buy, rehab, rent, refinance, repeat model, flipping homes, triplex, fourplex, etc.

The list keeps on going.

 

And the majority of what you’ll hear is good stuff and how people are making tonnes of money, so that confuses you even more which strategy to use.

 

I tell investors what one strategy may be good for someone else, may not be good for you.

 

It depends on your time, your available capital, your experience, and how much effort you want to put into it.

All strategies can become profitable. It just depends on what you want do accomplish with your real estate investing.

 

I had a 6-unit building in Hamilton. I purchased it back in 2010 but eventually sold it in 2014. I was negative cash flow about $1000 a month because there so much tenant issues, turnover and maintenance issues it was a headache. After the dust settled, I lost $30K on it. If I held it until today, it would’ve been probably worth at least $300K more than what I sold it for, but at that time, it wasn’t the right investment for me. And right now, I’m not interested in getting back into the multi-family game, however, I know many investors who are doing very well in with it.

 

With 2 young kids and one on the way, I currently like condo investments. They’re simple, easy to rent out, very low maintenance, but they don’t cash flow…and I know that, and I’m OK with it.

 

There was a condo townhouse in one of my Investor Best Buy emails that was sent out and had negative $300 or so a month in cash flow. It was a turn-key long term equity play and I was going to buy it if an investor didn’t pick it up, but they did. However, a lot of people who I talked to about that property didn’t like the negative cash flow…and that’s fine, it wasn’t the right investment for them at this time.

 

So when you’re looking into your next strategy, think deep of what you really want. How much time, effort and money you want to spend on that investment and what you want it to produce for you. Do you want cash flow, potential appreciation, minimal work, etc.