Feeling Overwhelmed/Struggling to Pick Niche/Strategy

[Jake Thompson]

Hey friends,

I'm a new investor, just bought my first property (a duplex) that I intend on holding for rental income (currently living in one unit). My problem is now, I want to really narrow down and focus on a niche/strategy to start building my portfolio. but I can't seem to pick one thing. Everything seems great. My ultimate goal is to have enough rental income coming in that I don't have to work and can live comfortably ($10,000/mo), however I don't know what to choose to get there. Buy and Hold SFRs, small multi's, apartments, mortgage notes? Or should I flip to build up some cash first? Then of course there's the problem of where to actually invest. I hear a lot of people say to stay local at first, but I'm also in San Diego where the competition is fierce and (as far as I can tell) few to no cash flow properties are out there.

A little about myself I'm transitioning out of the military and will be going to school using my G.I. Bill (Military pays for for tuition and housing costs), but other than that I won't have a job so I will have the time to work on my RE business. 

I appreciate any advice on how to choose a niche/strategy and actually stick to it without getting sidetracked by the many others that are out there!

[David Thompson]

Jacob,

Couple thoughts.  One, you are normal.  Two, its cool that you are starting young and thinking about a plan and how to get there already.  I've struggled w/that in the past and talking to a lot of RE investors, seems like a common theme.  Real estate is a great vehicle and there are a lot of ways to be successful in it which is even more fascinating and probably enhances this "too many choices" problem. 

May I suggest a couple things to help sort out. 1) Read some books on various niches (BP has several) and pros/cons to each. Does anything seem more like you personality wise and also what time, energy, money reqrs are needed ? Go to several different local REI meetups (non sales kind) in your area and check out different niches. Meet a few interesting / experienced people at each one of these events and setup 1x1 coffee chats w/them. Talk to them about their niche and what they are doing...also discuss your goals and objectives. Determine in advance of these meetings if you can / willing to give something of value in time, money, expertise, connections to them to help them grow their business in exchange for learning from them, profiting w/them (JV), etc. Once you find a niche / partner / mentor...then study to become an expert on that niche. Don't stress about marrying this niche for life, but do stay w/one thing to get really good before adding another niche to your arsenal.