There’s no one-size-fits-all approach to real estate investing. Whether you’re looking for passive income, quick profits, or long-term equity growth, the strategy you choose will shape everything from the types of properties you buy to the professionals you partner with.
In this article, we break down the most popular real estate investing strategies and explain the pros, cons, and typical investor profiles for each one.
1. Buy and Hold
Buy and hold is one of the most common investment strategies. You purchase a rental property and hold it over the long term while collecting monthly rent and benefiting from appreciation over time.
Best for: Investors focused on long-term wealth building, steady cash flow, and tax advantages.
Considerations: You'll need solid property management (either yourself or a hired company), a good location, and reliable tenants.
2. Fix and Flip
Fix and flip investors buy properties at a discount, renovate them, and resell for a profit. This strategy relies heavily on market timing, rehab costs, and speed.
Best for: Investors with access to capital, strong project management skills, and an appetite for risk.
Considerations: Profits can be high, but so are the risks. Market changes or unexpected repairs can eat into margins fast.
3. House Hacking
House hacking is when you buy a multi-unit property (like a duplex or triplex), live in one unit, and rent out the others to cover your mortgage.
Best for: New investors who want to live affordably while building equity and gaining landlord experience.
Considerations: You’ll need to be comfortable living next to tenants and managing the property personally.
4. Short-Term Rentals
Short-term rental investors use platforms like Airbnb or Vrbo to rent their properties out nightly or weekly. Returns can be higher than long-term rentals, especially in tourist-friendly areas.
Best for: Investors in high-demand travel markets who are comfortable managing turnovers, reviews, and regulations.
Considerations: Local laws and seasonal demand can impact profitability. A good cleaner and responsive management are essential.
5. BRRRR (Buy, Rehab, Rent, Refinance, Repeat)
The BRRRR strategy involves buying undervalued properties, fixing them up, renting them out, refinancing to pull out equity, and repeating the process.
Best for: Investors looking to scale their portfolios quickly with limited upfront capital.
Considerations: This method is complex and requires coordination with lenders, contractors, appraisers, and property managers. One delay can disrupt your timeline.
6. Real Estate Wholesaling
Wholesaling involves finding distressed properties, getting them under contract, and assigning the contract to another investor for a fee.
Best for: Investors with strong negotiation skills and a large network of buyers.
Considerations: Legal requirements vary by state. You’ll need excellent lead generation and marketing systems.
Choosing the Right Strategy
The best investment strategy depends on your capital, time, risk tolerance, and long-term goals. Some investors combine multiple strategies (e.g., house hacking to start, then transitioning to buy-and-hold), while others specialize in one approach.
No matter your strategy, success comes from doing your research, building the right team, and staying disciplined over time.
At Real Estate Investment Link, we connect investors with trusted professionals who can help you execute your strategy — from real estate agents and lenders to property managers and contractors.