Which strategy to implement?

[Joshua Jones]

So I’m jumping into real estate investing. 

Have access to about $300,000 (not planning on using it all at once.)

There are so many different strategies, LTR, STR, MTR, BRRRR, tax lien foreclosure etc.

Is there a book or course I can buy that goes over all the different strategies?

Maybe a personality assessment test I can take that will match me up with the right strategy for me personally?


I know this about myself, I love learning, building systems, and the joy of completing the project…

But then I want to be on to the next thing. 

Quick communications is my love language, but I know I don’t want to personally be taking calls from angry tenants to deal with issues. (I know that’s where a good PM comes in.)

I’ve read half the Rich Dad series and took their course.

But still feel like the only strategy recommendation for a newbie is 2-4 Plex’s, which every other investor seems to be doing as well. 

Like the idea of BRRRR and MTR, but know little to nothing. I also have no rehab knowledge personally.

Any specific guidance on books, courses, masterminds, mentors etc for strategies and implementation?

I’d rather follow a proven system. 

[Evan Polaski]

@Joshua Jones

At a very high level:
LTR - could be single to much larger. Focus is steady cash flow and appreciation. Pros - consistent income with 12 month lease. When compared to STR, management fee is outsourced or work load if self managed is much lower. Cons - long term tenants generally seem to do more damage to properties than guests in STR. Hard to find cash flow in many markets today.

STR - typically single family property. Cash flow focus. Location should be considered more like a hotel, meaning high tourist areas, business travel, proximity to events, highways, restaurants, etc. (I had an Airbnb that was in a good neighborhood for locals, and while it did okay, it was not the ideal Airbnb location). Pros (in my experience) - less wear and tear on property. Potential for much more cash flow. Cons - you are in the hospitality business. No long term income and travel is discretionary for most people and companies. There have been a glut of new Airbnbs, so competition is fierce. Maintenance is a PITA, assuming it is well booked (you only have about 4 hours between tenants to get things like leaking faucet fixed). Higher start-up cost given need to furnish and outfit property. Higher ongoing costs - you are paying all utilities + Netflix/cable, you provide toilet paper, coffee, cleaning supplies, etc that are not included with LTR. I would argue appreciation is more volatile. LTR tend to be standard houses that everyone is looking for in all markets. STR tend to be either on higher traffic areas with more amenities or tourist areas, i.e. Gatlinburg. While this market is currently booming, if we hit a recession, second home values decline faster than primary at the same time you are likely seeing a decline in bookings (for the same economic reasons).

BRRR - LTR, with a flip at the front end. Renovation risks, refi risk and all the same things as LTR above.

MTR (I have never done) seems to be a hybrid of LTR and STR. You buy and furnish property, but don't need to keep utilities in your name or provide all the hospitality items like an STR. You get higher rent than LTR, but typically less than STR (assuming you have an in-demand STR). I also always wonder how much demand there really is for 3-9 month leases in all markets, and with the seeming popularity of this style of rental, seems like there is a lot more product coming to market.

At the end of the day, people are making money on all of these. LTR is the most common over time. STR is only in last 10 or so years, but mainly in the last 5. MTR used to always be "corporate rentals" and was a niche business that seems to be the new "hot" focus.

At the end of the day: I would go to local meetups, REIA groups, etc and talk with other investors that have done these. Anyone selling a course will make it seem like that is the best route, what it sounds like you are trying to understand is what are the risks/cons/work needed for any given style of investing, and determine which best fits your style.