If you are venturing into real estate for the first time or adding to a growing, established portfolio, a solid real estate investment strategy should be a chief priority, regardless of your experience.

You might be surprised how commonly this fundamental is overlooked, but the fact is that most (if not all) successful investors rarely find success without a firm plan.

In this brief guide, we outline six distinct approaches to real estate investment strategies that are proven, digestible, and easily executable by even the most novice investors.

But first (and at the risk of stating the obvious), why is it so important to have a plan in the first place?

Real Estate Rewards the Prepared

In the simplest of terms, buying a property without considering the most basic real estate investment strategies is like starting a road trip without a destination. While you will eventually get somewhere, you can probably expect to waste a lot of time, money, and energy along the way.

Ultimately, real estate rewards discipline and consistency. A solid plan helps you avoid emotion-based decisions, focus on the numbers, and build long-term wealth, potentially of the generational kind.

If your tactic is aimed at achieving rental property cash flow, buy-and-hold appreciation, or a combination of both, deciding the best tactics from the very beginning is incredibly important.

1. Buy and Hold

This classic real estate investment strategy is one of the simplest but most effective of them all. The basic premise involves acquiring a rental property and holding onto it for the long term to build wealth through monthly rental income and property appreciation over time.

Who it suits: Investors with a long-term mindset who want passive income and equity growth. It’s also ideal for busy professionals who don’t have the time to flip homes or manage short-term rentals.

How to execute: Start by researching landlord-friendly markets with strong job growth and rent demand. Use a rental property calculator to ensure the deal generates a positive cash flow after accounting for taxes, insurance, and maintenance. Work with a local property manager if you’re investing remotely.

Pros:

• Generates consistent monthly income: Rental payments cover your mortgage and provide excess cash flow.
• Property value tends to increase over time: You benefit from natural market appreciation.
• Leverages tenants to pay down your mortgage: Each rent check chips away at your loan balance.

Cons:

• Tied-up capital: Your down payment and reserves are locked into the property.
• Maintenance responsibilities, unless you hire a property manager: Emergencies and repairs can still land on your plate.
• Slower liquidity if you need to sell quickly: It may take time to offload a rental, especially if tenant-occupied.

👉 Starting at the beginning? You might be interested in our guide How to Build a Rental Portfolio from Scratch

2. BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

Commonly referred to as an accelerated growth strategy, BRRRR involves buying a fixer-upper, renovating it, renting it out, and then refinancing it to pull out equity, before using that equity to fund the next deal.

Who it suits: Investors willing to be hands-on early, with a strong grasp of budgeting, contractor management, and timelines.

How to execute it: Source undervalued properties through wholesalers or distressed listings. Build a reliable contractor team. After rehab and tenant placement, work with a lender who specializes in cash-out refinances based on the new appraised value.

Pros:

• Grows your portfolio quickly: You recycle your capital instead of saving for each new down payment.
• Recaptures your initial investment sooner: Refinance returns your funds for reinvestment.
• Builds forced appreciation through renovations: Improvements increase the property’s market value and rental income.

Cons:

• Requires upfront capital and renovation risk: You’ll need funds for purchase and repairs, with no guaranteed outcomes.
• Can stall if refinancing terms don’t go as planned: A low appraisal or lending issue can halt your progress.
• Demands a reliable financing team: Success hinges on good communication with lenders, appraisers, and contractors.

3. House Hacking

House hacking simply means living in part of the property (like one unit of a duplex) while renting out the rest. You offset your mortgage with rental income and slowly (but surely) build equity while keeping housing costs low.

Who it suits: First-time buyers, young professionals, or anyone looking to invest with low risk while reducing their own living expenses.

How to execute it: Use low-down-payment real estate financing like FHA loans to buy a multi-unit property. Then, simply live in one unit for a year to meet the loan requirements. Remember to screen tenants carefully, and there is no reason why you can’t coexist peacefully.

Pros:

• Reduces or eliminates your housing cost: Rent from other units helps cover your mortgage.
• Easier to qualify for residential financing: You benefit from owner-occupant loan terms.
• Great entry point into investing: Gain experience with minimal risk before scaling.

Cons:

• Requires sharing your space (or proximity to tenants): Some privacy sacrifices are involved.
• Limits your property options based on financing rules: FHA and similar loans have property condition requirements.
• May require living in the property for a set time: You can’t immediately treat it as a fully passive rental.

4. Short-Term and Mid-Term Rentals

Short-term rentals (such as Airbnb) and mid-term rentals (for travel nurses, for example, or business professionals) can generate more cash flow than traditional long-term rentals, assuming they are managed effectively.

Who it suits: Investors comfortable with marketing, hospitality, or hiring a short-term rental manager.

How to execute it: Choose properties in cities with tourism or business demand. Furnish them professionally, take quality photos, and list on platforms like Airbnb or Furnished Finder.

Pros:

• Higher income potential: Nightly rates often beat monthly rents in strong markets.
• Flexible usage (you can use the property when not booked): Great for part-time personal use.
• Popular in tourist or high-demand urban areas: Strong occupancy helps maximize returns.

Cons:

• Local regulations may restrict use: Some cities ban or limit short-term rentals.
• Requires active management or a hosting team: Guest turnover and cleaning logistics take time.
• More wear and tear on the property: Frequent guests tend to accelerate maintenance cycles.

5. Turnkey Rentals

Arguably one of the most effortless real estate investment strategies, turnkey rentals involves buying a property that’s already rehabbed, tenanted, and often managed by a professional team. These are attractive to out-of-state investors who want minimal involvement.

Who it suits: Remote investors, busy professionals, or anyone thinking about real estate investing working full-time. The name of the game is pure simplicity without relinquishing all control.

How to execute it: Vet turnkey providers thoroughly by asking for inspection reports, rent rolls, and PM contracts. Interview the property management team diligently and focus on stable, cash-flowing markets, such as Houston.

Pros:

• Minimal setup required: The property is already leased and renovated.
• Immediate cash flow: You earn a steady rental income from day one.
• Often bundled with property management: Resulting in a hassle-free, hands-off experience for investors.

Cons:

• May pay a premium for convenience: Prices are often (but not always) marked up by providers.
• Harder to verify rehab quality from a distance: Without a local contact, unpleasant surprises may arise.
• Less control over tenant selection or repairs: You rely on the existing systems that have been established by management teams.

6. Real Estate Syndications (Passive Investing)

Syndications allow you to pool funds with other investors to buy large commercial or residential properties, allowing you to become a passive investor while a general partner manages the entire project.

Who it suits: High-income earners who want real estate exposure without the responsibility of active hands-on management.

How to execute it: Look for syndication sponsors with a proven track record, reviewing offering memorandums very carefully. Understand the deal structure, projected returns, and hold period before committing funds.

Pros:

• Access to larger deals: Invest in apartment complexes or commercial properties you couldn’t buy alone.
• Hands-off investment: No tenant calls, maintenance, or day-to-day decisions.
• Diversifies your portfolio: Adds real estate exposure without active management.

Cons:

• Less liquidity: Your funds are typically tied up for 3–7 years.
• Limited control over operations: You rely on the sponsor’s decisions and performance.
• Requires upfront vetting and trust in the sponsor: Poor communication or management can impact your returns.

How to Choose the Right Strategy for You

As you might expect, there is no single defining real estate investment strategy for you. They depend entirely on your personal goals, available time, risk appetite, and desired level of involvement.

To arrive at a strategy that meets your goals, ask yourself:

❓Do I want to be hands-on or passive?

❓How much time can I realistically commit?

❓What’s my timeline for returns?

For example, a high-earning professional with little spare time to offer may prefer syndications or turnkey properties. By the same token, someone eager to learn the ropes might start with house hacking or the BRRRR method.

Bottom Line: Strategy Beats Guesswork, Every Time

Despite popular belief, the key to long-term success isn’t chasing social media ‘guru’ advice, following trends, or overanalyzing every market. It’s picking a clear strategy, sticking with it, and adjusting as you grow.

Either way, all of the real estate investment strategies we have just covered can work if matched correctly to your goals, resources, and capabilities.

🗓️Interested in exploring comprehensive, bespoke real estate investment strategies? Book your strategy call with Networth Builders and get a custom plan built just for you.