What niche to focus on?

[Kelley Lefmann]

My partner & I (new to real estate investing) have been advised to pick a niche: homes for first-time buyers, “value-add” properties (those in need of work), foreclosure buys, tax lien purchases, etc.  That said, since we are looking to invest out of state, and will be partnering with a private investor, I'm intimidated by foreclosure buys & tax lien purchases. In hot markets that have seen huge appreciation (10%) in recent years, are we being naive to buy & hold, versus buy low & flip?