In today's video, we'll be discussing the three main categories of real estate investments and the pros and cons of each. We'll help you decide on the best real estate investing strategy for you, as many people are claiming their strategy is the best.
You can also follow me on Instagram: @koukun.unosawa
In today's video, I'm going to share the three categories of real estate investments and the pros and cons of each one to help you decide what is the best real estate investing strategy. Now, if you're new to my channel, my name is Koukun, and I'm a real estate investor, and I run a Real Estate Team here in the Niagara region. If you're interested in learning more about what we do, check out the link in the comments below for our Beginners Guide to Investing in the Niagara Region.
The first real estate investing strategy is what I call quick start simple ongoing strategies. These include turnkey investments such as single family homes, turnkey duplexes, or small multifamily properties where you can receive the rent as soon as you make the purchase. The challenge with these properties is that it is hard to find the ones that have the potential to create positive cash flow while still being in a good neighborhood and being of a good quality of property. The benefits are fairly self-explanatory. It's a turnkey investment. It's simple to start. It's simple to manage. So it is overall a very easy investment strategy.
The second strategy is what I call hard start simple ongoing strategies. This is where you have to make a lot more effort right at the beginning to uncover the potential of an investment property and maybe do renovations or work to bring that property up to a standard that then can create positive cash flow. Once the work is done. This becomes a very simple long-term investment. For example, you may buy a property, and add additional apartments in the basement. That takes a lot of work to complete. But once it's done, you have a solid property that's going to last a very long time. The challenge with this, obviously, is the work that it takes upfront. You will likely need a team of professionals to help guide you through that process, and it's still going to take work to find the opportunities and go through that process. The benefits are that once it's done, it is cash-flowing investment that is likely at a higher standard than the one you can find on the market for sale today.
The third type of real estate investing strategies is simple to start difficult, ongoing strategies. This is where the ongoing management of the strategy becomes difficult. For example, short-term rentals and student rentals. These are strategies that have the potential to create positive cash flow and are fairly easy to start. But the challenge is that you are pretty much becoming a business owner. You need to have systems in place. You need to have a team in place to help you manage and run these investments. And even with the team in place and the systems in place, it is still going to be more difficult than the first two strategies. The benefits are that it is easier to start than the second strategy, but it will be more work on goal.
As a result, my opinion is there is no one best real estate investing strategy. Each of them comes with pros and cons. The best way to decide what is the best realistic investing strategy is to consider what is the best real estate investing strategy for you. So now you don't have to worry if someone else is making money doing a strategy that works for them but is not one that works for you. I hope you found this video helpful. Let me know in the comments below if you have any questions and until next time. All the best.
