Real Estate Investing (REI) in current housing market?

[Danielle Nicholas]

I currently rent a 2b/2ba with a roommate, I'm in my late 20s and have a decent income and savings.

I initially was just looking to buy a house this year and rent out a room. I've decided against this due to housing prices, lack of supply, and competition.

I then thought about building to avoid these issues, but have learned that purchasing land and permits costs a great deal of upfront cash, and I believe I could use that cash in other investments for better growth.

Next, I've thought about continuing to rent, but purchasing a property in a less competitive market (either in the US, or maybe abroad? Not sure how this works of if this is a good idea?). This way I could avoid the negatives of this current market (is this true?) and still get some cash flow to cover my own rent along with appreciation, and eventually refinance to put a down payment on another property. The main risk I see with this is issues with tenants or depreciation of the property due to the current market being at a peak. What are people's thoughts on this?

While having my own home would be nice, I am in no rush to buy property if it is not a good time. Just curious what you all would recommend at this point in time.

Thanks!